Publication:
Nudging Payment Behavior: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity

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creativeworkseries.issn1564-698X
dc.contributor.authorBonan, Jacopo
dc.contributor.authorD'Adda, Giovanna
dc.contributor.authorMahmud, Mahreen
dc.contributor.authorSaid, Farah
dc.date.accessioned2024-03-27T18:58:54Z
dc.date.available2024-03-27T18:58:54Z
dc.date.issued2023-06-24
dc.description.abstractThis paper reports results from a randomized control trial with a pay-as-you-go (PAYG) solar system provider in Pakistan. In the default treatment, customers are told the amount to pay every month to keep the system active. In a first treatment, customers are assisted in planning this monthly payment. A second treatment discloses that payments can be made flexibly within the month. This disclosure may reduce contract cancellation by helping minimize transaction costs but may increase contract complexity and reduce discipline. A third treatment combines flexibility with assistance in planning payments. Disclosing flexibility increases contract cancellation relative to the default but combining flexibility with planning offsets this effect. Treatment effects appear stronger among users facing high mental constraints and transaction costs. These findings support the idea that behavioral factors, such as inattention and commitment problems, lay behind the negative impact of flexibility on cancellation. The results suggest that providers of PAYG systems may face a trade-off between disclosing complex contractual features and customer retention. Planning helps customers handle the added complexity.en
dc.identifierhttp://documents.worldbank.org/curated/en/099619312122327572/IDU03966f59c06e040434109ea20fede4697dd83
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/41301
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://hdl.handle.net/10986/41301
dc.languageEnglish
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectCONSUMER BEHAVIOR
dc.subjectBEHAVIORAL NUDGES
dc.subjectSOLAR ENERGY
dc.subjectFIELD EXPERIMENT
dc.subjectPAKISTAN
dc.titleNudging Payment Behavioren
dc.title.subtitleEvidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricityen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/37/4/620/7206770 Journal website (version of record)
okr.crossref.titleNudging Payment Behavior: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity
okr.date.disclosure2024-03-27
okr.date.lastmodified2023-12-12T00:00:00Zen
okr.doctypeJournal Article
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099619312122327572/IDU03966f59c06e040434109ea20fede4697dd83
okr.guid099619312122327572
okr.identifier.docmidIDU-3966f59c-6e04-4341-9ea2-fede4697dd83
okr.identifier.doi10.1093/wber/lhad012
okr.identifier.doihttps://doi.org/10.1596/41301
okr.identifier.externaldocumentum34212940
okr.identifier.internaldocumentum34212940
okr.identifier.report186395
okr.import.id3647
okr.importedtrueen
okr.language.supporteden
okr.pagenumber620-639
okr.pdfurlhttp://documents.worldbank.org/curated/en/099619312122327572/pdf/IDU03966f59c06e040434109ea20fede4697dd83.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeMiddle East and North Africa
okr.region.countryPakistan
okr.topicMacroeconomics and Economic Growth::Econometrics
okr.topicEnergy::Energy Resources Development
okr.topicEnergy::Solar Energy
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume37 (4)
relation.isJournalIssueOfPublication4ddf46f6-1032-47f8-8c9d-679aa30665f3
relation.isJournalIssueOfPublication.latestForDiscovery4ddf46f6-1032-47f8-8c9d-679aa30665f3
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication7dc8eca2-8e4f-44f1-8b8b-d19a0b9a8116
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