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Tell Me Something I Don’t Already Know: Informedness and the Impact of Information Programs

David Byrne1; Andrea La Nauze2; Leslie Martin1

1 University of Melbourne · 2 University of Pittsburgh

The Review of Economics and Statistics 2018 open access

We document how imperfect information generates heterogeneous effects in information treatments with personalized high-frequency feedback and peer comparisons. In our field experiment in retail electricity, we find that high- and low-energy users symmetrically underestimate and overestimate their relative energy use pretreatment. Responses to personalized feedback, however, are asymmetric. Households that overestimate their relative use and low users both respond by consuming more. These boomerang effects provide evidence that peer-comparison information programs, even those coupled with normative comparisons, are not guaranteed to lead to increases in prosocial behavior.

DOI
10.1162/rest_a_00695
Volume
100 (3)
Pages
510-527
Language
en
Export
BibTeX
Sources
crossref openalex