Sensitivity to Nudges: Does it Differ Across Generations?

Abstract

Perhaps the world's greatest challenge today is climate change, mainly due to human causes. Nudging policies have shown promising results for behavioral improvement. However, little is known about generational differences in sensitivity to behavioral nudges. Understanding this would help in pursuing targeted policies that can have both effectiveness and cost benefits. This study aims to determine the generational differences between pre-millennials and millennials through an online experiment. Participants may or may not have been exposed to a nudge after which they donate a fictitious amount to an environmental charity. To see generational differences in sensitivity, the results of the nudge conditions are compared for both generations with their respective benchmark control group. The analysis concerns generational differences in both the amount donated and in the probability that a participant will donate at all after being exposed to certain condition. Although the results imply promising effects on millennials, they are contradictory and insignificant, which means that an unequivocal conclusion is not forthcoming until further research provides clarity.