Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/204418 
Year of Publication: 
2018
Series/Report no.: 
IFRO Working Paper No. 2018/01
Publisher: 
University of Copenhagen, Department of Food and Resource Economics (IFRO), Copenhagen
Abstract: 
People are prone to habits but how important are they for economic outcomes? In a randomized field experiment we compare two treatments with identical economic incentives to adjust a range of household production activities. Treatments only differ in the extent to which they allow households to adjust habits relevant for these activities. We utilize smart-metered hourly power consumption to unobtrusively measure treatment effects. We find that preventing habits from being adjusted reduces consumer surplus by 76% suggesting a substantial economic value of habits.
Subjects: 
habits
field experiment
household behavior
text messages
electricity use
JEL: 
C93
D12
D90
Document Type: 
Working Paper

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