Nudges and peak pricing: A common pool resource energy conservation experiment

Using a contextualised common pool resource framework, individual energy consumption choices are studied. Individuals nudged towards the socially optimal level of by use happy (sad) face if they underconsuming (overconsuming). A price is set to incentivise second group choose observed in nudge treatment order quantify via an equivalent price. Across all 10 periods, significantly lower groups compared control without nudges and prices. The leads average above Nash equilibrium. There implications for policy makers as performs well, on average, implied loss welfare, understood integrated into subjects’ decision making quicker than However, there tendency both reinforce existing behaviour those who overconsume continue overconsume.