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EMAC 2021 Annual Conference

May social labeling compensate the negative impact of monetary incentives in spillover effects? The case of products close to expiration date

Published: May 25, 2021


Louise Dumont, UCLouvain; Karine Charry, UClouvain; Valérie Swaen, UCLouvain


Using monetary incentives to trigger eco-friendly behaviors is common nowadays. However, positive spillover effect is less likely to emerge in these cases, while spillover is crucial considering the large number of sustainable issues we are confronted to. Research shows that social labeling can be used to trigger positive spillover. Yet, it has not made clear whether social labeling may be effective when a monetary incentive is offered to encourage behaviors. To fill this gap, our study investigates the effectiveness of social labeling in the purchase of products-close-to-the-expiration-date offered at a reduced price. Based on two experimental studies, we investigate the consequences of an eco-friendly and an economical labeling on subsequent behaviors. We aim at contributing to the social labeling literature by studying the unique case of eco-friendly behaviors led by monetary incentives and see whether the negative impact of monetary incentives on new behaviors may be turned around.