| Abstract: |
We examine the impact of status-based threshold incentives on physical
activity habits using a longitudinal data set from a private health and life
insurance provider in the United Kingdom. We find that status-based incentives
effectively foster sustained behavioral change, persisting even after the
incentive is removed. We find variations in responses based on status goal
levels and peer influence within member group sets. These findings suggest
that status-driven incentives are particularly effective among individuals
with weaker pre-existing habits, reinforcing the importance of social
comparisons and goal gradient effects in shaping behavior. Our results
contribute to the broader literature on threshold incentives, habit formation,
and peer spillover effects in physical activity. |