Better together? Group incentives and the demand for prevention

Lagarde, Mylène ORCID: 0000-0002-5713-2659 and Riumallo Herl, Carlos (2025) Better together? Group incentives and the demand for prevention. Journal of Development Economics, 172. ISSN 0304-3878

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Abstract

In a field experiment with 400 groups of informal entrepreneurs in El Salvador, we compare the impact of group incentives (linked to compliance of all members) to equivalent individual ones to encourage cardiovascular check-ups. We test two incentive designs: small rewards and lotteries. Group incentives are as effective as individual ones at increasing demand for prevention, but, unlike individual incentives, they fail to target those with potentially higher health risks. The equal effectiveness of group incentives is linked to more communication, coordination between members and, to some extent, peer pressure. These social dynamics contribute to reduce uncertainty about other group members’ decisions and enhance the perceived net benefit of prevention. Although the preventive check-ups do not induce short-term lifestyle changes, they substantially increase the detection of new risk factors, making all incentives highly cost-effective interventions in this population.

Item Type:	Article
Additional Information:	© 2024 The Author(s)
Divisions:	Health Policy
Subjects:	R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine H Social Sciences > HB Economic Theory
JEL classification:	C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field Experiments D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving I - Health, Education, and Welfare > I1 - Health > I12 - Health Production: Nutrition, Mortality, Morbidity, Suicide, Substance Abuse and Addiction, Disability, and Economic Behavior
Date Deposited:	09 Sep 2024 08:45
Last Modified:	23 Sep 2024 16:03
URI:	http://eprints.lse.ac.uk/id/eprint/125349

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