Empirical Observations on Longer-term Use of Incentives for Weight Loss

Leslie K. John; George   Loewenstein; Kevin  Volpp

Article | Preventive Medicine | November 2012

Empirical Observations on Longer-term Use of Incentives for Weight Loss

by Leslie K. John, George Loewenstein and Kevin Volpp

Abstract

Behavioral economic-based interventions are emerging as powerful tools to help individuals accomplish their own goals, including weight loss. Deposit contract incentive systems give participants the opportunity to put their money down toward losing weight, which they forfeit if they fail to lose weight; lottery incentive systems enable participants to win money if they attain weight loss goals. In this paper, we pool data from two prior studies to examine a variety of issues that unpublished data from those studies allow us to address. First, examining data from the deposit contract treatments in greater depth, we investigate factors affecting deposit frequency and size and discuss possible ways of increasing deposits. Next, we compare the effectiveness of both deposit contract and lottery interventions as a function of participant demographic characteristics. These observations may help to guide the design of future, longer-term, behavioral economic-based interventions.

Keywords: weight loss; obesity; Behavioral economics; intervention; Personal Development and Career; Economic Growth; Contracts; Motivation and Incentives; Banks and Banking; Organizational Design; Strategic Planning;

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John, Leslie K., George Loewenstein, and Kevin Volpp. "Empirical Observations on Longer-term Use of Incentives for Weight Loss." Preventive Medicine 55, Supplement 1 (November 2012): S68–S74.

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The case describes a program that CVS Health recently implemented to improve medication adherence, an important problem from a societal, public policy, and firm perspective. A test of the program, costing hundreds of thousands of dollars to implement, increased the proportion of adherent customers by 1.4 percentage points. Students are asked to quantify the system-wide economic benefit of this improvement and draw upon insights from behavioral science to examine approaches for boosting medication adherence.

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By the time Dan Doctoroff, CEO of Sidewalk Labs, began hosting a Reddit “Ask Me Anything” session in January 2018, he had only nine months remaining to convince the people of Toronto, their government representatives, and presumably his parent company Alphabet, Inc., that Sidewalk Labs’ plan to construct “the first truly 21st-century city” on the Canadian city’s waterfront was a sound one. Along with much excitement and optimism, strains of concern had emerged since Doctoroff and partners first announced their intentions for a city “built from the internet up” in Toronto’s Quayside district. As Doctoroff prepared for yet another milestone in a year of planning and community engagement, it was almost certain that of the many questions headed his way, digital privacy would be among them.

In their commentary, Wilson & Stolarz-Fantino argue that specific design features of our research mean that it cannot have policy implications and that researchers “need to consider profit maximization in menu design or studies are likely to suggest ill-informed implementations.” In this reply, we respond to the specific critiques of our work with empirical data and conceptual arguments. We agree with Wilson and Stolarz-Fantino that researchers seeking to understand a policy’s influence on consumers should test predictions about which strategies firms will likely use when implementing a policy. Research, however, that demonstrates the effectiveness (or lack thereof) of an intervention even without perfectly predicting a firm’s response still has enormous value for setting policy.

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Empirical Observations on Longer-term Use of Incentives for Weight Loss

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