Not All Nudges are Created Equal: Comparing Social and Pure Informational Nudges

The effects of nudges as interventions to induce prosocial behavior has been broadly studied in the literature. However, little is known about how different groups are influenced by pure informational nudges versus social nudges. We use a large-scale field experiment to determine whether these types of nudges work for different groups. Our pure informational nudge makes salient a price notch and our social nudge consists of a social comparison. The results indicate that the pure informational nudge affects only those for whom the information is relevant, thus improving both individual and social welfare. In contrast, the social nudge has a homogeneous effect on all groups considered. This is evidence that the social nudge may increase a moral or emotional cost, and therefore its effect on social welfare is indeterminate. These findings offer insights for the design of interventions that use nudges to induce behavioral changes.