Projects

Incentives to Work Out- Evidence from Field Experiments (with U. Narang)
Firms designing incentive programs face important questions about their effectiveness - When do financial rewards work, when does social information work, and does combining them do more than either alone to influence consumer behavior? We address these using a randomized field experiment at a U.S. university recreation center, assigning participants of a group exercise program to one of four conditions - financial incentives (FI), rank information (RI), both (combined), or neither (control). Our results show that neither FI, RI, nor their combination significantly increases workout frequency or variety over the four-week intervention. However, FI and the combined treatment each improve goal completion (i.e., meeting weekly workout targets), relative to control, reflecting a shift in the temporal distribution of effort rather than an increase in total activity. Only the combined treatment shows persistence of effects on goal completion in the two weeks after the incentive period ends. Our mechanism analyses show stronger effects among participants who engage early on with the incentive program and explain the added value of rank information when paired with financial incentives for high-ranking participants and for openers of rank emails. The treatment effects are heterogeneous; the combined treatment works best for participants with salient intrinsic goals such as weight loss, whereas FI alone is effective for those without such goals. Both work better for consumers with past experience in the workout program. Our findings suggest that the effectiveness of incentive programs depends on consumer motivation and program engagement with implications for how firms should target and structure wellness offerings.