Work

Better together? Group incentives and the demand for prevention

Year: 2024

Type: article

Abstract: We study the power of combining small financial incentives and social dynamics through incentives conditional on group behavior to increase individuals' investment in preventive health. In a field experiment in El Salvador, we compare the impact of group incentives to equivalent individual ones to increase uptake of a cardiovascular medical check-up. Demand for prevention increases significantly with all incentives and despite the uncertainty about others’ behavior, group incentives are at least as effective as individual ones. Group incentives operate by increasing communication and collective action between members and, to a lesser extent through peer pressure. Because payment is only made to individuals if all members comply, collective incentives are more cost-effective than individual ones. Overall, group incentives may be valuable strategies to help overcome financial and behavioral barriers that limit investment in health.

Source: Journal of Development Economics

DOI: 10.1016/j.jdeveco.2024.103365

Authors: Mylène Lagarde, Carlos Riumallo Herl

Institutions: London School of Economics and Political Science, Tinbergen Institute, Erasmus University Rotterdam

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: hybrid

Estimated APC paid: $4,190