MOTIVATION CROWDING IN REAL CONSUMPTION DECISIONS: WHO IS MESSING WITH MY GROCERIES? |
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| Authors: | GRISCHA PERINO LUCA A PANZONE TIMOTHY SWANSON |
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| Institution: | 1. Perino: School of Business, Economics and Social Sciences, University of Hamburg, Welckerstr. 8, Hamburg 20354, Germany. Phone +49 40 42838‐8767, E‐mail grischa.perino@wiso.uni‐hamburg.de;2. Panzone: Sustainable Consumption Institute, University of Manchester, 188 Waterloo Place, Oxford Road, Manchester, M13 9PL, UK. Phone +44 (0)161 27 54275, E‐mail luca.panzone@manchester.ac.uk |
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| Abstract: | We present evidence of crowding out of intrinsic motivation in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments, a label, a subsidy, and a neutral price change, in their ability to induce consumers to switch from dirty to clean products. Interestingly, a subsidy framed as an intervention is less effective than either a label or a neutrally framed price change. We argue that this provides a new explanation for crowding behavior: consumers are resistant to having the line of demarcation between public and private decision making moved in either direction. (JEL C93, Q18, Q54, Q58, H23, H41) |
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