Ride Your Luck! A Field Experiment on Lottery-Based Incentives for Compliance

Fabbri, Marco; Barbieri, Paolo Nicola; Bigoni, Maria

doi:10.1287/mnsc.2018.3163

Cited by 10 publications

(15 citation statements)

References 57 publications

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“…Gamblification broadly implies individual gambling design elements (e.g., dice, cards, chance-based mechanisms) that can be used in isolation or in combination. As such, gamblification impacts digital platforms' revenue streams (e.g., sales, ads and subscriptions) through improving user engagement with a digital platform (e.g., user onboarding, revisits, activity) (e.g., Shen et al, 2014;Fabbri et al, 2019;Mazar et al, 2017). For instance, Google Pay (Google, 2020) uses digital scratch cards and Starbucks (2020) employs augmented reality lotteries after the purchase of products to entertain users and incentivize repurchases, thus gamblifying their digital product offerings (see Fig.…”

Section: Introductionmentioning

confidence: 99%

Gamblified digital product offerings: an experimental study of loot box menu designs

2021

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To augment traditional monetization strategies, digital platform providers increasingly draw on gamblification (i.e., the use of gambling design elements). By means of gambling design elements (e.g., lottery tickets, scratch cards, loot boxes), platform providers do not only entertain users but also incentivize them to purchase digital products. Yet, despite the increasing prevalence of gamblified digital platforms, little is known about how gamblification influences user purchase behaviors. Drawing on prospect theory, we investigate gamblification in the form of loot box menu designs and the associated effects of uncertainty, loss experience and behavioral control on user purchase behavior. Specifically, we conducted a contest-based online experiment with 159 participants, finding that platform providers can profit from offering loot boxes with certain (vs. uncertain) rewards in loot box menus. Furthermore, this effect intensifies when participants previously experienced a loss and decreases when they perceive to have more control over the result. Thus, our findings provide theoretical and practical insights for a better understanding of gamblification in general and of loot box menu designs for enhancing digital business models in particular.

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Section: Introductionmentioning

confidence: 99%

Gamblified digital product offerings: an experimental study of loot box menu designs

2021

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Section: Incentivizing Compliancementioning

confidence: 99%

“…In Rimini, Italy, Fabbri, Barbieri, and Bigoni (2019) have conducted a field experiment to determine whether a positive incentive scheme could effectively improve fare compliance and curb evasion. This incentive scheme took the form of a lottery and sought to improve fare compliance by giving passengers a chance to be rewarded when they paid their fares (Fabbri et al, 2019). The experiment ran for one month in partnership with Start Romagna SpA and Agenzia Mobilita, the two PTCs operating in Rimini, and consisted of three lottery draws awarding a total of six prizes of €500 each (Fabbri et al, 2019).…”

Section: Incentivizing Compliancementioning

confidence: 99%

“…This incentive scheme took the form of a lottery and sought to improve fare compliance by giving passengers a chance to be rewarded when they paid their fares (Fabbri et al, 2019). The experiment ran for one month in partnership with Start Romagna SpA and Agenzia Mobilita, the two PTCs operating in Rimini, and consisted of three lottery draws awarding a total of six prizes of €500 each (Fabbri et al, 2019). To ensure that self-selection of treated buses was not taking place, the lottery was promoted only by posters that had been put up inside of the treated buses (Fabbri et al, 2019).…”

Section: Incentivizing Compliancementioning

confidence: 99%

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Towards a equitable approach to tackling the fare evasion problem: a scoping literature review and case study analysis

Cho¹

2022

Preprint

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<div>The widespread adoption of “proof-of-payment” ticketing systems by public transit corporations (PTCs) has renewed interest in the topic of fare evasion. Although this system has</div><div>many benefits, it has also been associated with higher rates of actual or perceived fare evasion. As such, many PTCs including the TTC in Toronto have also simultaneously invested in heightened measures to curb fare evasion. These measures, however, have usually taken the form of increased fines and policing, which have the potential to further disadvantage marginalized populations. A scoping literature review and case study analysis have been</div><div>employed to determine whether there is existing evidence that can make a case for the need for a more equitable solution to this problem, and to determine what alternative measures have been effective. Although there is much evidence to support the need for a more equitable approach, research into alternative measures is emerging and therefore somewhat inconclusive.</div>

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“…In a public reward lottery in Argentina(Carrillo, Castro, and Scartascini, 2017) and a laboratory experiment(Bazart and Pickhardt, 2011), the net revenues of lottery rewards for tax compliance were not necessarily positive. Lottery incentives effectively changed health(Beatty and Katare, 2018;Haisley et al, 2012), transportation(Fabbri, Barbieri, and Bigoni, 2019) and survey participation(Laguilles, Williams, and Saunders, 2011;Singer and Ye, 2013) behavior.…”

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confidence: 99%

Nudging Taxpayer Registration?: Field Experimental Evidence on Backfiring Incentives

Eguino¹,

Román²,

Schächtele³

2020

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Governments in Latin America raise little revenue from property taxation, despite arguments for its efficiency and equity. Adequate registry information would support consistent collection, but registries are costly to establish and maintain. Compared to tax collection, field experimental evidence on low-cost interventions in this area is scarce. This paper provides the first such evidence for online tax registration. The municipality of Fortaleza, Brazil, randomized 163K property taxpayers into three groups. The first group represents the status quo that did not receive a particular treatment. To the second group, the tax administration sent an e-mail asking for registration; to the third group, an e-mail that additionally offered a lottery reward for successful registration. Relative to the first group, both e-mails increased registration, especially among compliant taxpayers, men, intermediate age groups and intermediate property values. But adding the lottery incentive had a negative effect on registration. We hypothesize that this backfiring effect relates to an inadvertent signal about non-enforcement. Additional evidence from a post-experimental survey suggests that for taxpayers in the lottery group, norm compliance and the usefulness of the online registry were less important reasons to register. In sum, the results suggest that the intervention prompted parts of the population to register and that monetary incentives may be counterproductive.

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Ride Your Luck! A Field Experiment on Lottery-Based Incentives for Compliance

Cited by 10 publications

References 57 publications

Gamblified digital product offerings: an experimental study of loot box menu designs

Gamblified digital product offerings: an experimental study of loot box menu designs

Towards a equitable approach to tackling the fare evasion problem: a scoping literature review and case study analysis

Nudging Taxpayer Registration?: Field Experimental Evidence on Backfiring Incentives

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