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Getting to the Top of Mind: How Reminders Increase Saving AgEcon
Karlan, Dean S.; McConnell, Margaret; Mullainathan, Sendhil; Zinman, Jonathan.
We develop and test a simple model of limited attention in intertemporal choice. The model posits that individuals fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry generates some predictions that overlap with models of present-bias. Our model also generates the unique predictions that reminders may increase saving, and that reminders will be more effective when they increase the salience of a specific expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings account holders.
Tipo: Working or Discussion Paper Palavras-chave: Intertemporal consumer choice; Savings; Attention; Consumer/Household Economics; Financial Economics; D91; E21.
Ano: 2010 URL: http://purl.umn.edu/92001
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Hey Look at Me: The Effect of Giving Circles on Giving AgEcon
Karlan, Dean S.; McConnell, Margaret.
Theories abound for why individuals give to charity. We conduct a field experiment with donors to a Yale University service club to test the impact of a promise of public recognition on giving. Some may claim that they respond to an offer of public recognition not to improve their social standing, but rather to motivate others to give. To tease apart these two theories, we conduct a laboratory experiment with undergraduates, and found no evidence to support the alternative, altruistic motivation. We conclude that charitable gifts increase in response to the promise of public recognition primarily because of individuals' desire to improve their social image.
Tipo: Working Paper Palavras-chave: Prosocial behavior; Experiments; Voluntary contributions; Financial Economics; Public Economics; D64; C90; L30.
Ano: 2012 URL: http://purl.umn.edu/121670
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