Social information ‘nudges’: an experiment with multiple group references

Shaun Hargreaves-Heap, Abhijit Ramalingam (Lead Author), David Rojo Arjona

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Abstract

Social information ‘nudges’ concerning how others perform typically boost individual performances in experiments with one group reference point. However, in many natural settings, sometimes due to policy, there are several such group reference points. We address the complications that such multiple group social information might introduce through an experiment. The boost to average performance is significant and comparable to the one group case. Between-group inequality does not change. Individual inequality falls, however, because the boost is largest among the pre-‘nudge’ very poor performers. Finally, the boost to average performance is highest when individuals freely choose their group affiliations.
Original languageEnglish
Pages (from-to)348–365
JournalSouthern Economic Journal
Volume84
Issue number1
Early online date17 Mar 2017
DOIs
Publication statusPublished - Jul 2017

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