[Seminaire CREM] Présentation de David CRAINICH, CNRS, LEM
Increasing sleep duration through financial incentives: optimal program design
Donnerstag 13 November, 12:15Passed
Abstract:
Financial incentives to promote sleep offer a reward to subjects who meet a sleep duration objective during a predefined period. One variant of these programs – called deposit-based financial incentive – requires subjects to pay a deposit for participating in the program. The paper determines the personalized values of deposit and reward giving to subjects the incentive to participate while maximizing their efforts to sleep longer. We show that the values of deposit and reward likely to reach these two objectives increase as: 1) the baseline probability of achieving the sleep duration objective increases; 2) the degree of risk aversion decreases; 3) the degree of correlation aversion decreases. Finally, we discuss the design of an experiment to test our results.
