Labeling and spending

Labeling money transfers for a specific purpose can influence how the recipient uses the money- a prime example being the "winter fuel payment" to seniors in the UK. Survey data on household fuel consumption has shown that individuals who received the payment spent between 10% and 57% more on fuel than those just below the age threshold. By labeling the payment as fuel money, spending is more likely to be directed towards the labeled purpose.

Biases Used


Other Applications: Law Abiding Behavior, Employment and Work Performance, Education