[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/750.html
   My bibliography  Save this paper

Habit formation, obesity, and cash rewards

Author

Listed:
  • Augurzky, Boris
  • Bauer, Thomas K.
  • Reichert, Arndt R.
  • Schmidt, Christoph M.
  • Tauchmann, Harald
Abstract
This paper examines weight loss and the formation of healthy habits through cash rewards in the context of a multi-phase randomized controlled trial involving 700 obese individuals. We find effects of monetary incentives for weight loss of up to EUR 300 on body weight during all experimental phases, including a period of a year and a half following the exposure to the financial rewards. We also find effects on healthy behavior during this follow-up phase. After the initial incentive period, we additionally provided participants who had lost a substantial amount of weight with monetary rewards of up to EUR 500. These had only short-term effects on body weight and healthy behavior. We argue that our findings are best explained by monetarily incentivized participants having formed healthy habits by the time the experiment ended and that only the speed of the transition to the new (health) equilibrium was affected by the additional rewards. Contrary to the pessimistic perspective presented in earlier empirical research on habit formation, our results suggest that a simple program relying on weight loss rewards can result in long-term health behavioral change.

Suggested Citation

  • Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2018. "Habit formation, obesity, and cash rewards," Ruhr Economic Papers 750, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:750
    DOI: 10.4419/86788871
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/179121/1/1023079232.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4419/86788871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heather Royer & Mark Stehr & Justin Sydnor, 2015. "Incentives, Commitments, and Habit Formation in Exercise: Evidence from a Field Experiment with Workers at a Fortune-500 Company," American Economic Journal: Applied Economics, American Economic Association, vol. 7(3), pages 51-84, July.
    2. Uri Gneezy & Stephan Meier & Pedro Rey-Biel, 2011. "When and Why Incentives (Don't) Work to Modify Behavior," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 191-210, Fall.
    3. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-241, May.
    4. Agnès Festré & Pierre Garrouste, 2015. "Theory And Evidence In Psychology And Economics About Motivation Crowding Out: A Possible Convergence?," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 339-356, April.
    5. George Messinis, 1999. "Habit Formation and the Theory of Addiction," Journal of Economic Surveys, Wiley Blackwell, vol. 13(4), pages 417-442, September.
    6. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1071-1102.
    7. Jay Bhattacharya & M. Kate Bundorf & Noemi Pace & Neeraj Sood, 2011. "Does Health Insurance Make You Fat?," NBER Chapters, in: Economic Aspects of Obesity, pages 35-64, National Bureau of Economic Research, Inc.
    8. Dan Acland & Matthew R. Levy, 2015. "Naiveté, Projection Bias, and Habit Formation in Gym Attendance," Management Science, INFORMS, vol. 61(1), pages 146-160, January.
    9. Finkelstein, Eric A. & Tham, Kwang-Wei & Haaland, Benjamin A. & Sahasranaman, Aarti, 2017. "Applying economic incentives to increase effectiveness of an outpatient weight loss program (TRIO) – A randomized controlled trial," Social Science & Medicine, Elsevier, vol. 185(C), pages 63-70.
    10. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    11. Acland, Dan & Levy, Matthew R., 2015. "Naiveté, projection bias, and habit formation in gym attendance," LSE Research Online Documents on Economics 66147, London School of Economics and Political Science, LSE Library.
    12. Alec Brandon & Paul Ferraro & John List & Robert Metcalfe & Michael Price & Florian Rundhammer, 2017. "Do the effects of social nudges persist? Theory and evidence from 38 natural field experiments," Natural Field Experiments 00598, The Field Experiments Website.
    13. Gary Charness & Uri Gneezy, 2009. "Incentives to Exercise," Econometrica, Econometric Society, vol. 77(3), pages 909-931, May.
    14. Arndt R. Reichert, 2015. "Obesity, Weight Loss, and Employment Prospects: Evidence from a Randomized Trial," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 759-810.
    15. Bruno S. Frey & Reto Jegen, 2001. "Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
    16. Loewenstein, George & Price, Joseph & Volpp, Kevin, 2016. "Habit formation in children: Evidence from incentives for healthy eating," Journal of Health Economics, Elsevier, vol. 45(C), pages 47-54.
    17. Spinnewyn, Frans, 1981. "Rational habit formation," European Economic Review, Elsevier, vol. 15(1), pages 91-109.
    18. Alfredo R. Paloyo & Arndt R. Reichert & Holger Reinermann & Harald Tauchmann, 2014. "The Causal Link Between Financial Incentives And Weight Loss: An Evidence-Based Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 401-420, July.
    19. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 489-520.
    20. Alec Brandon & Paul J. Ferraro & John A. List & Robert D. Metcalfe & Michael K. Price & Florian Rundhammer, 2017. "Do The Effects of Nudges Persist? Theory and Evidence from 38 Natural Field Experiments," NBER Working Papers 23277, National Bureau of Economic Research, Inc.
    21. Franco Sassi, 2010. "Obesity and the Economics of Prevention," Books, Edward Elgar Publishing, number 14244.
    22. Cawley, John & Meyerhoefer, Chad, 2012. "The medical care costs of obesity: An instrumental variables approach," Journal of Health Economics, Elsevier, vol. 31(1), pages 219-230.
    23. Morris, Stephen, 2006. "Body mass index and occupational attainment," Journal of Health Economics, Elsevier, vol. 25(2), pages 347-364, March.
    24. Grossman, Michael & Mocan, Naci (ed.), 2011. "Economic Aspects of Obesity," National Bureau of Economic Research Books, University of Chicago Press, number 9780226310091, September.
    25. repec:bla:jecsur:v:13:y:1999:i:4:p:417-42 is not listed on IDEAS
    26. Euna Han & Edward C. Norton & Sally C. Stearns, 2009. "Weight and wages: fat versus lean paychecks," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 535-548, May.
    27. Cawley, John & Price, Joshua A., 2013. "A case study of a workplace wellness program that offers financial incentives for weight loss," Journal of Health Economics, Elsevier, vol. 32(5), pages 794-803.
    28. Spenkuch, Jörg L., 2012. "Moral hazard and selection among the poor: Evidence from a randomized experiment," Journal of Health Economics, Elsevier, vol. 31(1), pages 72-85.
    29. Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
    30. Harl E. Ryder & Geoffrey M. Heal, 1973. "Optimal Growth with Intertemporally Dependent Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(1), pages 1-31.
    31. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    32. Paloyo, Alfredo R. & Reichert, Arndt R. & Reuss-Borst, Monika & Tauchmann, Harald, 2015. "Who responds to financial incentives for weight loss? Evidence from a randomized controlled trial," Social Science & Medicine, Elsevier, vol. 145(C), pages 44-52.
    33. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-763, Part I Ju.
    34. SPINNEWYN, Frans, 1981. "Rational habit formation," LIDAM Reprints CORE 436, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Marcus & Thomas Siedler & Nicolas R. Ziebarth, 2022. "The Long-Run Effects of Sports Club Vouchers for Primary School Children," American Economic Journal: Economic Policy, American Economic Association, vol. 14(3), pages 128-165, August.
    2. Andrej Woerner & Giorgia Romagnoli & Birgit M. Probst & Nina Bartmann & Jonathan N. Cloughesy & Jan Willem Lindemans, 2021. "Should Individuals Choose Their Own Incentives? Evidence from a Mindfulness Meditation Intervention," CESifo Working Paper Series 9494, CESifo.
    3. Tauchmann Harald & Wübker Ansgar, 2023. "Weight Loss and Sexual Activity in Adult Obese Individuals: Establishing a Causal Link," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(6), pages 663-698, December.
    4. Lucas Hafner & Harald Tauchmann & Ansgar Wübker, 2021. "Does moderate weight loss affect subjective health perception in obese individuals? Evidence from field experimental data," Empirical Economics, Springer, vol. 61(4), pages 2293-2333, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2014. "Small Cash Rewards for Big Losers – Experimental Insights Into the Fight Against the Obesity Epidemic," Ruhr Economic Papers 530, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Boris Augurzky & Thomas K.Bauer & Arndt R. Reichert & Christoph M. Schmidt & Harald Tauchmann, 2014. "Small Cash Rewards for Big Losers – Experimental Insights Into the Fight Against the Obesity Epidemic," Ruhr Economic Papers 0530, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. repec:zbw:rwirep:0530 is not listed on IDEAS
    4. Stecher, Chad & Mukasa, Barbara & Linnemayr, Sebastian, 2021. "Uncovering a behavioral strategy for establishing new habits: Evidence from incentives for medication adherence in Uganda," Journal of Health Economics, Elsevier, vol. 77(C).
    5. Harris, Matthew C. & Kessler, Lawrence M., 2019. "Habit formation and activity persistence: Evidence from gym equipment," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 688-708.
    6. Manuela Angelucci & Silvia Prina & Heather Royer & Anya Samek, 2015. "When Incentives Backfire: Spillover Effects in Food Choice," NBER Working Papers 21481, National Bureau of Economic Research, Inc.
    7. Belot, Michèle & James, Jonathan & Nolen, Patrick, 2016. "Incentives and children's dietary choices: A field experiment in primary schools," Journal of Health Economics, Elsevier, vol. 50(C), pages 213-229.
    8. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2012. "Does Money Burn Fat? – Evidence from a Randomized Experiment," Ruhr Economic Papers 368, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Boris Augurzky & Thomas K. Bauer & Arndt R. Reichert & Christoph M. Schmidt & Harald Tauchmann, 2012. "Does Money Burn Fat? – Evidence from a Randomized Experiment," Ruhr Economic Papers 0368, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. repec:zbw:rwirep:0368 is not listed on IDEAS
    11. Cawley, John, 2015. "An economy of scales: A selective review of obesity's economic causes, consequences, and solutions," Journal of Health Economics, Elsevier, vol. 43(C), pages 244-268.
    12. Mariana Carrera & Heather Royer & Mark Stehr & Justin Sydnor, 2020. "The Structure of Health Incentives: Evidence from a Field Experiment," Management Science, INFORMS, vol. 66(5), pages 1890-1908, May.
    13. Ouayogodé, Mariétou H., 2016. "Effectiveness of weight loss intervention in highly-motivated people," Economics & Human Biology, Elsevier, vol. 23(C), pages 263-282.
    14. Nan Yang & Yong Long Lim, 2018. "Temporary Incentives Change Daily Routines: Evidence from a Field Experiment on Singapore’s Subways," Management Science, INFORMS, vol. 64(7), pages 3365-3379, July.
    15. Mortimer, Duncan & Harris, Anthony & Wijnands, Jasper S. & Stevenson, Mark, 2021. "Persistence or reversal? The micro-effects of time-varying financial penalties," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 72-86.
    16. Arndt R. Reichert, 2015. "Obesity, Weight Loss, and Employment Prospects: Evidence from a Randomized Trial," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 759-810.
    17. Daniel Mochon & Janet Schwartz & Josiase Maroba & Deepak Patel & Dan Ariely, 2017. "Gain Without Pain: The Extended Effects of a Behavioral Health Intervention," Management Science, INFORMS, vol. 63(1), pages 58-72, January.
    18. Arndt Reichert, 2012. "Obesity, Weight Loss, and Employment Prospects – Evidence from a Randomized Trial," Ruhr Economic Papers 0381, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. repec:zbw:rwirep:0381 is not listed on IDEAS
    20. Condliffe, Simon & Işgın, Ebru & Fitzgerald, Brynne, 2017. "Get thee to the gym! A field experiment on improving exercise habits," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 23-32.
    21. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    22. Allais, Olivier & Bazoche, Pascale & Teyssier, Sabrina, 2017. "Getting more people on the stairs: The impact of point-of-decision prompts," Social Science & Medicine, Elsevier, vol. 192(C), pages 18-27.
    23. Giacomo Calzolari & Mattia Nardotto, 2017. "Effective Reminders," Management Science, INFORMS, vol. 63(9), pages 2915-2932, September.

    More about this item

    Keywords

    field experiment; obesity; healthy behavior; habit formation; sustainability; monetary incentives;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:rwirep:750. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.