Operations, Information and Decisions Papers

Document Type

Working Paper

Date of this Version

1-2012

Publication Source

Management Science

Volume

58

Issue

1

Start Page

52

Last Page

61

DOI

10.1287/mnsc.1110.1367

Abstract

Personal experience matters. In a field setting with longitudinal data, we disentangle the effects of learning new information from the effects of personal experience. We demonstrate that experience with a fine, controlling for the effect of learning new information, significantly boosts future compliance. We also show that experience with a large fine boosts compliance more than experience with a small fine, but that the influence of experience with both large and small fines decays sharply over time.

Comments

Postprint titled as "Size matters (and so does experience): How personal experience with a fine influences behavior" and the final version titled as "The Impact of Personal Experience on Behavior: Evidence from Video-Rental Fines".

Keywords

behavioral economics, decision making, backward-looking behavior, decisions following descriptions versus experience, learning

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Date Posted: 27 November 2017