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

Haselhuhn, Michael P.; Pope, Devin G.; Schweitzer, Maurice E.; Fishman, Peter

doi:10.1287/mnsc.1110.1367

Cited by 66 publications

(33 citation statements)

References 56 publications

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“…Further, research on habituation (Wood and Neal 2007;Neal et al 2012) suggests that the constant presence of electronic monitoring may help people eventually build hand hygiene habits whereby hand hygiene compliance becomes unconsciously integrated into their behavioral routines, leading to either constant or perhaps increasing process compliance over time. On the other hand, another stream of research suggests that interventions may slowly lose their effectiveness with the passage of time as they grow less salient (Thompson and Spencer 1966;Nahrgang, Morgeson and Hofmann 2011;Haselhuhn et al 2012). This would predict a decline in process compliance over time.…”

Section: Discussionmentioning

confidence: 99%

“…First, individuals may become desensitized to a stimulus over time (Thompson and Spencer 1966;Haselhuhn et al 2012 Charness and Gneezy (2009) who found that incentives for exercise accrued long-term benefits even after the treatment was removed. Similarly, Allcott and Rogers (2014) found that informing people of neighbors' energy usage had a lasting effect for years after such mailings were discontinued -although the effect did dissipate over time.…”

Section: Effects Of Individual Electronic Monitoring Over Timementioning

confidence: 99%

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Motivating Process Compliance Through Individual Electronic Monitoring: An Empirical Examination of Hand Hygiene in Healthcare

et al. 2017

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The design and use of standard processes are foundational recommendations in many operations practices. Yet, given the demonstrated performance benefits of standardized processes, it is surprising that they are often not followed consistently. One way to ensure greater compliance is by electronically monitoring the activities of individuals, although such aggressive monitoring poses the risk of inducing backlash. In the setting of hand hygiene in healthcare, a context where compliance with standard processes is frequently less than 50% and where this lack of compliance can result in negative consequences, we investigated the effectiveness of electronic monitoring. We did so using a unique, radio frequency identification (RFID)-based system deployed in 71 hospital units. We found that electronically monitoring individual compliance resulted in a large, positive increase in compliance. We also found that there was substantial variability in the effect across units and that units with higher levels of preactivation compliance experienced increased benefits from monitoring relative to units with lower levels of prepreactivation compliance. By observing compliance rates over three and a half years, we investigated the persistent effects of individual monitoring and found that compliance rates initially increased before they gradually declined. Additionally, in multiple units, individual monitoring was discontinued, allowing for an investigation of the impact of removing the intervention on compliance. Surprisingly, we found that, after removal, compliance rates declined to below prepreactivation levels. Our findings suggest that, although individual electronic monitoring can dramatically improve process compliance, it requires sustained managerial commitment. AcknowledgmentsWe are grateful to many individuals at Proventix, including David Sellers, Harvey Nix, and Elizabeth Pembleton, whose assistance made this project possible. We thank Christian Terwiesch for his helpful comments as we developed the manuscript. We acknowledge the developmental assistance of the DE, AE, and reviewers in improving this paper throughout the review process. Research reported in this publication was supported by the National Institute on Aging of the National Institutes of Health under Award Number P30AG034532. The content is solely the responsibility of the authors and does not necessarily represent the official views of the National Institutes of Health. Any errors are the responsibility of the authors. COMPLIANCE AND MONITORING 1 AbstractThe design and use of standard processes are foundational recommendations in many operations practices. Yet, given the demonstrated performance benefits of standardized processes, it is surprising that they are often not followed consistently. One way to ensure greater compliance is by electronically monitoring the activities of individuals, although such aggressive monitoring poses the risk of inducing backlash. In the setting of hand hygiene in healthcare -a context where compliance with st...

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Section: Discussionmentioning

confidence: 99%

Section: Effects Of Individual Electronic Monitoring Over Timementioning

confidence: 99%

Motivating Process Compliance Through Individual Electronic Monitoring: An Empirical Examination of Hand Hygiene in Healthcare

et al. 2017

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“…Indeed, experience itself can lead to changes in behavior even if the objective parameters are fully described. Haselhuhn et al (2012) find that late returns of video rentals significantly decreased for patrons who had experienced previous fines for late returns despite no change in fine levels. Bigoni et al (2008) compliance model but does not formally model the evolution of these beliefs.…”

Section: Experiential Deterrencementioning

confidence: 73%

“…With this challenge in mind, our study contributes to the described literature by investigating specific deterrence in a controlled setting where the only change is the experience of being punished, which represents the treatment, thereby isolating the effect of penalty imposition (i.e., holding constant the threat and severity of future enforcement). Given this isolation, we contribute to the literature by testing both the standard Haselhuhn et al (2012) conjecture that experience may cause an upwards revision in the expected 7 "affect" (essentially negative emotions) associated with being fined, which was initially underestimated. As a related study, Keller et al (2006) study the role of affect in perceptions of flooding risk.…”

Section: Summary and Hypothesesmentioning

confidence: 99%

“…Keller et al 2006;Bigoni et al, 2008;Haselhuhn et al, 2012), a notion that we describe as experiential deterrence. Information received via experience appears to be processed differently by decision makers than information received via description (Newell and Rakow, 2007;Simonsohn et al, 2008).…”

Section: Expectation As the Hypothesis Of Initial Penalty Neutralitymentioning

confidence: 99%

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Can Punishment Generate Specific Deterrence Without Updating? Analysis of a Stated Choice Scenario

Earnhart

Friesen

2013

Environ Resource Econ

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This study explores the specific deterrence generated by punishment in the context of regulatory violations with a focus on the distinction between upward revisions to future punishment parameters -likelihood and severity -and the experience of being penalized. In order to avoid the pitfalls of empirically analyzing actual choices made by regulated entities, e.g., measuring entities' beliefs regarding the likelihood and size of future penalties, our study examines behavior associated with a stated choice scenario presented within a survey distributed to the environmental managers of facilities regulated under the U.S. Clean Water Act. This choice of respondents strengthens the external validity of our empirical results. Based on a variety of statistical methods, our empirical results strongly and robustly reject the standard hypothesis that specific deterrence stems solely from upward revisions to punishment parameters while supporting the alternative hypothesis of experiential deterrence, whereby facilities focus on recent experiences to shape their compliance behavior.

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Competitive escalation and interventions

Hafenbrädl

Woike

2018

Behavioral Decision Making

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Competitive escalation occurs frequently in managerial environments, when decisions create sunk costs and decision makers compete under time pressure. In a series of experiments using a minimal dollar auction paradigm, we test interventions to prevent competitive escalation. Without any intervention, most people, including experienced managers, escalate and lose money by bidding more than the price is worth (e.g., more than 10 € for 10 €). We test several interventions, in which we provide individuals with different types of experience: direct experience in structurally identical and in structurally similar situations, as well as direct experience in similarly competitive situations (lacking the escalation dimension). We also study indirect experience based on vicariously learning about the situation's consequences (experienced by others) and based on mental simulation by setting oneself a limit regarding where to exit the competition. In 3 experiments (N = 1,229), we find that direct experience in exactly the same or a structurally similar situation allows individuals to prevent subsequent escalation, whereas direct experience in a similar situation without escalation does not. Indirect experience based on vicarious learning successfully reduces competitive escalation, whereas a goal‐setting intervention that has proven instrumental in reducing classic escalation of commitment is not effective. This pattern of variation in the effectiveness of different interventions is consistent with the theory of a hot‐cold empathy gap that prevents people from anticipating how they will experience a competitive situation before entering it. As a methodological contribution, we developed a deception‐free computer‐player dollar‐auction for online participants and a dynamic chicken game.

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

Cited by 66 publications

References 56 publications

Motivating Process Compliance Through Individual Electronic Monitoring: An Empirical Examination of Hand Hygiene in Healthcare

Motivating Process Compliance Through Individual Electronic Monitoring: An Empirical Examination of Hand Hygiene in Healthcare

Can Punishment Generate Specific Deterrence Without Updating? Analysis of a Stated Choice Scenario

Competitive escalation and interventions

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