MOTIVATION CROWDING IN REAL CONSUMPTION DECISIONS: WHO IS MESSING WITH MY GROCERIES? | Zendy

PERINO GRISCHA | Zendy; PANZONE LUCA A. | Zendy; SWANSON TIMOTHY | Zendy

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MOTIVATION CROWDING IN REAL CONSUMPTION DECISIONS: WHO IS MESSING WITH MY GROCERIES?

Author(s) -

PERINO GRISCHA,

PANZONE LUCA A.,

SWANSON TIMOTHY

Publication year - 2014

Publication title -

economic inquiry

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.823

H-Index - 72

eISSN - 1465-7295

pISSN - 0095-2583

DOI - 10.1111/ecin.12024

Subject(s) - subsidy , crowding out , economics , purchasing , consumption (sociology) , microeconomics , crowding , intervention (counseling) , intrinsic motivation , monetary economics , psychology , social psychology , market economy , operations management , social science , neuroscience , psychiatry , sociology

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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