The Economic Value of Habits in Household Production: A Field Experiment
Publikation: Working paper
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The Economic Value of Habits in Household Production : A Field Experiment. / Bejan, Ioana; Jensen, Carsten Lynge; Andersen, Laura Mørch; Hansen, Lars Gårn.
Department of Food and Resource Economics, University of Copenhagen, 2018.Publikation: Working paper
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TY - UNPB
T1 - The Economic Value of Habits in Household Production
T2 - A Field Experiment
AU - Bejan, Ioana
AU - Jensen, Carsten Lynge
AU - Andersen, Laura Mørch
AU - Hansen, Lars Gårn
PY - 2018
Y1 - 2018
N2 - People are prone to habits but how important are they for economic outcomes? In a randomized field experiment we compare two treatments with identical economic incentives to adjust a range of household production activities. Treatments only differ in the extent to which they allow households to adjust habits relevant for these activities. We utilize smart-metered hourly power consumption to unobtrusively measure treatment effects. We find that preventing habits from being adjusted reduces consumer surplus by 76% suggesting a substantial economic value of habits.
AB - People are prone to habits but how important are they for economic outcomes? In a randomized field experiment we compare two treatments with identical economic incentives to adjust a range of household production activities. Treatments only differ in the extent to which they allow households to adjust habits relevant for these activities. We utilize smart-metered hourly power consumption to unobtrusively measure treatment effects. We find that preventing habits from being adjusted reduces consumer surplus by 76% suggesting a substantial economic value of habits.
M3 - Working paper
T3 - IFRO Working Paper
BT - The Economic Value of Habits in Household Production
PB - Department of Food and Resource Economics, University of Copenhagen
ER -
ID: 188908885