Rational Habit Formation: Experimental Evidence from Handwashing in India

2022 ◽  
Vol 14 (1) ◽  
pp. 1-41
Author(s):  
Reshmaan Hussam ◽  
Atonu Rabbani ◽  
Giovanni Reggiani ◽  
Natalia Rigol
Keyword(s):  
Experimental Evidence ◽  
Habit Formation ◽  
Rural India ◽  
Rational Addiction ◽  
Future Change ◽  
Average Child ◽  
Child Weight ◽  
Rational Addiction Model ◽  
Height Increase

We test the predictions of the rational addiction model, reconceptualized as rational habit formation, in the context of handwashing in rural India. To track handwashing, we design soap dispensers with timed sensors. We test for rational habit formation by informing some households about a future change in the returns to daily handwashing. Monitoring and incentives raise handwashing contemporaneously, and effects persist well after they end. In addition, people are rational about this habit formation: when they anticipate future monitoring, they increase their current handwashing. Average child weight and height increase for all study arms given soap dispensers. (JEL D12, D83, D91, I12, I18, J13, O12)

History-dependence in a rational addiction model

2005 ◽  
Vol 49 (3) ◽  
pp. 273-293 ◽  
Author(s):  
C. Gavrila ◽  
G. Feichtinger ◽  
G. Tragler ◽  
R.F. Hartl ◽  
P.M. Kort
Keyword(s):  
Rational Addiction ◽  
History Dependence ◽  
Rational Addiction Model

scholarly journals Alcohol Consumption and Its Adverse Effects in Poland in Years 1950–2005

2011 ◽  
Vol 2011 ◽  
pp. 1-13 ◽  
Author(s):  
Agnieszka Bielinska-Kwapisz ◽  
Zofia Mielecka-Kubien
Keyword(s):  
Alcohol Consumption ◽  
Adverse Effects ◽  
Traffic Accidents ◽  
Demand Function ◽  
Substitution Effects ◽  
Rational Addiction ◽  
Blood Alcohol ◽  
Alcohol Demand ◽  
Total Alcohol ◽  
Rational Addiction Model

This study examines changes in alcohol consumption and its adverse effects in Poland from 1950 to 2005. First, we estimate the total alcohol demand function and test Becker and Murphy's (1988) rational addiction model. Next, we explore substitution effects between beer, wine, and spirits and report income and own- and cross-price elasticities of demand for beer, wine, and spirits. Finally, we examine some adverse effects of alcohol consumption: traffic accidents, suicide rates, and vandalism rates. In particular, the effect of lowering the blood alcohol level limit (BAC) on traffic accidents is estimated.

scholarly journals The Demand For NFL Attendance: A Rational Addiction Model

2010 ◽  
Vol 8 (12) ◽  
Author(s):  
Erin LeAnne Spenner ◽  
Aju J. Fenn ◽  
John R. Crooker
Keyword(s):  
National Football League ◽  
Demand Elasticity ◽  
Rational Addiction ◽  
Data Set ◽  
Current Period ◽  
Pricing Behavior ◽  
Pricing Power ◽  
Profit Maximizing ◽  
Rational Addiction Model ◽  
Price Demand

<p class="Textbody" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This paper examines the demand for attendance at National Football League (NFL) games using a rational addiction model to test the hypothesis that professional football displays the properties of a habit-forming good.<span style="mso-spacerun: yes;">&nbsp; </span>Rational addiction theory suggests that past and future consumption play a part in determining the current period&rsquo;s consumption for habit-forming goods.<span style="mso-spacerun: yes;">&nbsp; </span>Additionally, we postulate the behavioral implications of profit-maximizing ticket pricing behavior by NFL teams.<span style="mso-spacerun: yes;">&nbsp; </span>Previous studies have been unable to detect pricing power by NFL teams.<span style="mso-spacerun: yes;">&nbsp; </span>Our model of pricing power allows us to identify theoretically- anticipated pricing behavior.<span style="mso-spacerun: yes;">&nbsp; </span>A pooled data set is collected using statistics from each NFL team from the 1983 to the 2008 seasons.<span style="mso-spacerun: yes;">&nbsp; </span>Current attendance is modeled as a function of team specific variables, including past and future attendance, ticket price, and team performance.<span style="mso-spacerun: yes;">&nbsp; </span>The model is estimated using Two-Stage Least Squares (2SLS).<span style="mso-spacerun: yes;">&nbsp; </span>We also treat the censored nature of ticket demand as NFL teams frequently experience sell-outs.<span style="mso-spacerun: yes;">&nbsp; </span>It is found that past and future attendance, winning percentage, the age of the stadium in which a team plays, and own-price demand elasticity influence attendance.<span style="mso-spacerun: yes;">&nbsp; </span>The fact that coefficients for past and future attendance are positive and significant in this analysis lends support to the notion that NFL fans display characteristics of rational addiction in their consumption behavior.<span style="mso-spacerun: yes;">&nbsp; </span>Further, we find evidence to support profit-maximizing behavior in ticket sales.</span></span></p>

Multiple equilibria and indifference-threshold points in a rational addiction model

2012 ◽  
Vol 21 (3) ◽  
pp. 507-522 ◽  
Author(s):  
Jonathan P. Caulkins ◽  
Gustav Feichtinger ◽  
Richard F. Hartl ◽  
Peter M. Kort ◽  
Andreas J. Novak ◽  
...  
Keyword(s):  
Multiple Equilibria ◽  
Rational Addiction ◽  
Rational Addiction Model
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