Study • Finance · Other
Everyone Believes in Redemption
Letzler & Tasoff (2013) ‘Everyone Believes in Redemption
Summary by Mark Egan
The authors elicit subjects' beliefs about the likelihood that they will redeem a mail-in form. Expected redemption rates exceed actual redemption rates by 49 percentage points, meaning that subjects are overoptimistic about their likelihood of redemption. The authors conduct three treatments to reduce overoptimism; (1) informing subjects about a previous cohort's redemption rates, (2) reminding subjects about the redemption deadline and (3) reducing transaction costs (i.e. making it easier). Only the third nudge had any effect and it reduced overoptimism by one half. The third nudge increased redemption but had no effect on beliefs suggesting that weak cost-salience is the mechanism for overoptimism.
Tactics used
TACTICS
Reduce Friction or Barriers
TACTICS
Reminders
TACTICS
Cues
TACTICS
& Triggers
TACTICS
Implementation Intentions
Behaviors addressed
Similar studies
Health · Diet & Nutrition
Schwartz et al. (2012). Inviting Consumers to Downsize Fast-Food Portions Significantly Reduces Calorie Consumption.
- Tactics
- Reminders, Cues, & Triggers
- Behaviors
- Diet & Nutrition
Finance · Fine or Debt Collection
Fellner et al. (2011). Testing Enforcement Strategies in the Field -Threat, Moral Appeal and Social Information.
- Tactics
- Social Norms, Reminders, Cues, & Triggers
- Behaviors
- Fine or Debt Collection
Finance · Savings
Karlan et al. (2010). Getting to the Top of Mind: How Reminders Increase Saving.
- Tactics
- Reminders, Cues, & Triggers, Micro-Incentives, Goal Setting, Commitment Devices
- Behaviors
- Savings
Education · Enrollment
Castleman (2013). Summer Nudging: Can Text Messages and Peer Mentor Outreach Increase College-Going Among Low-Income High School Graduates?
- Tactics
- Reminders, Cues, & Triggers
- Behaviors
- Enrollment