Interventions and Cognitive Spillovers

Research output: Contribution to journal › Journal article › Research › peer-review

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Interventions and Cognitive Spillovers. / Altmann, Steffen; Grunewald, Andreas; Radbruch, Jonas.

In: The Review of Economic Studies, Vol. 89, No. 5, 2022, p. 2293-2328.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Altmann, S, Grunewald, A & Radbruch, J 2022, 'Interventions and Cognitive Spillovers', The Review of Economic Studies, vol. 89, no. 5, pp. 2293-2328. https://doi.org/10.1093/restud/rdab087

APA

Altmann, S., Grunewald, A., & Radbruch, J. (2022). Interventions and Cognitive Spillovers. The Review of Economic Studies, 89(5), 2293-2328. https://doi.org/10.1093/restud/rdab087

Vancouver

Altmann S, Grunewald A, Radbruch J. Interventions and Cognitive Spillovers. The Review of Economic Studies. 2022;89(5):2293-2328. https://doi.org/10.1093/restud/rdab087

Author

Altmann, Steffen ; Grunewald, Andreas ; Radbruch, Jonas. / Interventions and Cognitive Spillovers. In: The Review of Economic Studies. 2022 ; Vol. 89, No. 5. pp. 2293-2328.

Bibtex

@article{bcead1c5204f4fd6a3e6b9070c4cbc51,
title = "Interventions and Cognitive Spillovers",
abstract = "This article investigates how incentives and behavioural policy interventions affect individuals{\textquoteright} allocation of scarce cognitive resources. Based on experimental evidence, we demonstrate that incentives systematically influence individuals{\textquoteright} allocation of cognitive resources, and their propensity to actively engage with a decision or to stay passive. Policies that steer individuals{\textquoteright} attention to a specific decision lead to more active decision-making and better choices in the targeted choice domain, but induce negative cognitive spillovers on the quality of choices in other domains. In our setting, these two countervailing effects offset each other, such that the overall payoff consequences of the interventions are essentially zero. We further document that cognitive spillovers are especially pronounced for complex choices and for subgroups of the population with a smaller stock of cognitive resources. We discuss implications for the design and evaluation of behavioural policy interventions.",
keywords = "Attention, Cognitive resources, Default options, Nudges, Passivity, Policy interventions, Spillover effects",
author = "Steffen Altmann and Andreas Grunewald and Jonas Radbruch",
note = "Publisher Copyright: {\textcopyright} The Author(s) 2021.",
year = "2022",
doi = "10.1093/restud/rdab087",
language = "English",
volume = "89",
pages = "2293--2328",
journal = "Review of Economic Studies",
issn = "0034-6527",
publisher = "Oxford University Press",
number = "5",

}

RIS

TY - JOUR

T1 - Interventions and Cognitive Spillovers

AU - Altmann, Steffen

AU - Grunewald, Andreas

AU - Radbruch, Jonas

N1 - Publisher Copyright: © The Author(s) 2021.

PY - 2022

Y1 - 2022

N2 - This article investigates how incentives and behavioural policy interventions affect individuals’ allocation of scarce cognitive resources. Based on experimental evidence, we demonstrate that incentives systematically influence individuals’ allocation of cognitive resources, and their propensity to actively engage with a decision or to stay passive. Policies that steer individuals’ attention to a specific decision lead to more active decision-making and better choices in the targeted choice domain, but induce negative cognitive spillovers on the quality of choices in other domains. In our setting, these two countervailing effects offset each other, such that the overall payoff consequences of the interventions are essentially zero. We further document that cognitive spillovers are especially pronounced for complex choices and for subgroups of the population with a smaller stock of cognitive resources. We discuss implications for the design and evaluation of behavioural policy interventions.

AB - This article investigates how incentives and behavioural policy interventions affect individuals’ allocation of scarce cognitive resources. Based on experimental evidence, we demonstrate that incentives systematically influence individuals’ allocation of cognitive resources, and their propensity to actively engage with a decision or to stay passive. Policies that steer individuals’ attention to a specific decision lead to more active decision-making and better choices in the targeted choice domain, but induce negative cognitive spillovers on the quality of choices in other domains. In our setting, these two countervailing effects offset each other, such that the overall payoff consequences of the interventions are essentially zero. We further document that cognitive spillovers are especially pronounced for complex choices and for subgroups of the population with a smaller stock of cognitive resources. We discuss implications for the design and evaluation of behavioural policy interventions.

KW - Attention

KW - Cognitive resources

KW - Default options

KW - Nudges

KW - Passivity

KW - Policy interventions

KW - Spillover effects

U2 - 10.1093/restud/rdab087

DO - 10.1093/restud/rdab087

M3 - Journal article

AN - SCOPUS:85160918588

VL - 89

SP - 2293

EP - 2328

JO - Review of Economic Studies

JF - Review of Economic Studies

SN - 0034-6527

IS - 5

ER -

ID: 274121383