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How Do Habits Form? Experimental Evidence from Health Screenings / Damon Jones, David Molitor, Julian Reif.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Jones, Damon.
Contributor:
Molitor, David.
Reif, Julian.
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w32745.
NBER working paper series no. w32745
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2024.
Summary:
We develop a framework for distinguishing between two competing mechanisms of habit formation and apply it to a three-year randomized experiment on annual health screenings among 4,799 university employees. Annually re-randomized incentives generate exogenous variation in early, late, and repeated screening, allowing us to test whether habits are strengthened by additional consumption or instead form discretely once consumption crosses a threshold. We find strong habit formation from initial exposure: completing a first screening raised subsequent screening rates by 32.4-36.1 percentage points (90%-111%). In contrast, completing a second screening had no detectable additional effect. Our results reject reinforcement models, including addiction, which predict repeated participation should strengthen the habit, and instead support a threshold model in which a single exposure is sufficient to establish and sustain the habit. Observational estimates imply the opposite conclusion, showing the value of rigorous research design in identifying mechanisms of habit formation.
Notes:
July 2024.
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