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When Incentives Backfire: Spillover Effects on Food Choice
April 22, 2015Poverty and Applied Microeconomics Seminar Series

Manuela Angelucci (University of Michigan) will present the results of recent research.

Speaker: Manuela Angelucci is an Assistant Professor at the University of Michigan. More »

Abstract: We study the spillover effects of incentives on a choice. We model the spillover as having both positive and negative effects on the choice and then run a field experiment in which we incentivize students’ choices of grapes over cookies. We randomize which child is incentivized, the fraction of children incentivized, and who can observe whether peers' choices are incentivized. We find that, while incentives increase the likelihood of initially choosing grapes, there are both positive and negative non-linear spillover effects. The overall effect of incentives is initially positive but becomes negative when more than 70\% of the group is incentivized.


Last Updated: Apr 16, 2015

The Poverty and Applied Micro Seminar Series is a weekly series hosted by the World Bank's research department. The series invites leading researchers in applied microeconomics from the fields of poverty, human development and public service delivery, agriculture and rural development, political economy, behavioral economics, private sector development, and a range of other fields to present the results of their most recent research in a seminar format. The full list of seminars can be viewed here.

Event Details
  • Date: April 22, 2015
  • Location: World Bank Headquarters, MC3-570
  • Time: 12:30 - 2:00 p.m.
  • CONTACT: Anna Bonfield
  • abonfield@worldbank.org