Event details :

Optimal design of deposit-based financial incentive programs for smoking cessation

with Léontine Goldzahl (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 – LEM – Lille Économie Management, Lille, France) and Stefan Lipman (Erasmus University Rotterdam, Rotterdam, The Netherlands)

Deposit-based financial incentive programs for smoking cessation offer to subjects who agree to pay a deposit for participation a reward if they do not smoke for a predefined period. The paper determines the personalized values of deposit and reward giving to each subject the incentive to participate while maximizing his efforts to quit smoking. We show that the values of deposit and reward likely to reach these two objectives decrease as: 1) the baseline probability of quitting smoking decreases; 2) the degree of risk aversion increases; 3) the degree of correlation aversion increases. We also show that these levels of deposit and reward are higher than those that subjects would choose from a menu of combinations offered to them. The maximization of efforts to quit smoking therefore implies that the values of deposit and rewards are assigned to subjects.

Link TEAMS : https://teams.microsoft.com/l/meetup-join/19%3ameeting_NDY2NGUxN2YtNTU3Ni00MDA0LWIxNjEtODA2ZDFkOTZkZTM5%40thread.v2/0?context=%7b%22Tid%22%3a%22158716cf-46b9-48ca-8c49-c7bb67e575f3%22%2c%22Oid%22%3a%22fddd0c62-419a-4791-a6e7-3ac36c83feac%22%7d