Nudging in Complex Environments
Julia Nafziger (Universität Aarhus)
Abstract: Using a novel experimental approach based on a computer game, we study (i) the effect of reminders on reminded actions and spillovers on non-reminded actions; (ii) spillovers between multiple nudges, by testing the effect of scaling up the number of reminded actions; (iii) intertemporal spillovers, by investigating whether the effects of having been exposed to reminders persist after reminders are withdrawn. Reminders lead to crowding-out of non-reminded actions, but the positive effect on the reminded actions dominates. There are decreasing returns to multiple reminders. After reminders are withdrawn, the positive effect partially fades out while the negative spillover effects persist.