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Information nudges and self control

Author

Listed:
  • Thomas Mariotti

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique)

  • Nikolaus Schweizer

    (Tilburg University [Netherlands])

  • Nora Szech

    (KIT - Karlsruhe Institute of Technology = Karlsruher Institut für Technologie)

  • Jonas von Wangenheim

    (Universität Bonn = University of Bonn)

Abstract
We study the optimal design of information nudges for present-biased consumers who make sequential consumption decisions without exact prior knowledge of their long-term consequences. For any distribution of risks, there exists a consumer-optimal information nudge that is of cutoff type, recommending abstinence if riskiness is high enough. Depending on the distribution of risks, more or less consumers may have to be sacriced in that they cannot be warned even though they would like to be. Under a stronger bias for the present, the target group receiving a credible warning to abstain must be tightened, but this need not increase the probability of harmful consumption. If some consumers are more strongly present-biased than others, traffic-light nudges turn out to be optimal and, when subgroups of consumers differ sufficiently, the optimal traffic-light nudge is also subgroup-optimal. We finally compare the consumer-optimal nudge with those a health authority or a lobbyist would favor.

Suggested Citation

  • Thomas Mariotti & Nikolaus Schweizer & Nora Szech & Jonas von Wangenheim, 2022. "Information nudges and self control," Working Papers hal-03629566, HAL.
    • Handle: RePEc:hal:wpaper:hal-03629566
    Note: View the original document on HAL open archive server: https://hal.science/hal-03629566
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    References listed on IDEAS

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    Cited by:

    1. Robertson, Matthew J., 2018. "Wrongful Conviction, Persuasion and Loss Aversion," CRETA Online Discussion Paper Series 48, Centre for Research in Economic Theory and its Applications CRETA.
    2. von Wangenheim, Jonas, 2018. "Persuasion Against Self-Control Problems," Rationality and Competition Discussion Paper Series 98, CRC TRR 190 Rationality and Competition.
    3. Habibi, Amir, 2020. "Motivation and information design," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 1-18.

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    More about this item

    Keywords

    Nudges; Information Design; Present-Biased Preferences; Self-Control;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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