Self-Control and Demand for Preventive Health: Evidence from Hypertension in India

Abstract Self-control problems constitute a potential explanation for the underinvestment in preventive health low-income countries. Behavioral economics offers tool to solve such problems: commitment devices. We conduct field experiment evaluate effectiveness of different types theoretically motivated contracts increasing doctor visits by hypertensive patients rural India. Despite achieving high take-up some treatment arms, we find no effects on actual or individual outcomes. A substantial number individuals pay but fail follow through visit, losing money without experiencing benefits. develop and structurally estimate prespecified model consumer behavior under present bias with varying levels naiveté. The results are consistent large share being partially naive about their own self-control sophisticated enough demand overly optimistic whether given level is sufficiently strong be effective. suggest that devices may practice welfare diminishing, at least contexts, serve as cautionary tale role care.