INCREMENTAL VS ONE-SHOT GOALS FOR RESOURCE CONSERVATION: EVIDENCE FROM A FIELD EXPERIMENT.

Abstract

The value function theory with goals as reference points predicts varying outcomes depending on goal di culty. We provide evidence for the relative e ectivness of moderate and extreme goals under feedback condition focusing on showering behaviours. The theory of habit formation predicts that gradual progression towards an extreme goal increases e ort ands performance compared to a one-shot goal. We test the relative conservation e ect generated by di erent goal progressions under feedback. Further, reference-dependent utility function implies buching of observations just above the goals. We examine the graphical evidence on the existence of excess mass of showers observed after the goals and sub-goals.