The Impact of Personal Experience on Behavior: Evidence from Video‐Rental Fines

The Impact of Personal Experience on Behavior: Evidence from Video‐Rental Fines

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Article ID: iaor2012499
Volume: 58
Issue: 1
Start Page Number: 52
End Page Number: 61
Publication Date: Jan 2012
Journal: Management Science
Authors: , , ,
Keywords: learning
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.

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