Cheap promises: Evidence from loan repayment pledges in an online experiment

Bhanot, S. P. (2017).

Journal of Economic Behavior & 

Organization, 142, 250-261.

https://doi.org/10.1016/j.jebo.2017.03.003

Abstract

Across domains, people struggle to follow through on their commitments. This can happen for many reasons, including dishonesty, forgetfulness, or insufficient intrinsic motivation. Social scientists have explored the reasons for persistent failures to follow through, suggesting that eliciting explicit promises can be an effective way to motivate action. This paper presents a field experiment that tests the effect of explicit promises, in the form of “honor pledges,” on loan repayment rates. The experiment was conducted with LendUp, an online lender, and targeted 4,883 first-time borrowers with the firm. Individuals were randomized into four groups, with the following experimental treatments: (1) having no honor pledge to complete (control); (2) signing a given honor pledge; (3) re-typing the same honor pledge as in (2) before signing; and (4) coming up with a personal honor pledge to type and sign. I also randomized whether or not borrowers were reminded of the honor pledge they signed prior to the repayment deadline. The results suggest that the honor pledge treatments had minimal impacts on repayment, and that reminders of the pledges were similarly ineffective. This suggests that borrowers who fail to repay loans do so not because of dishonesty or behavioral biases, but because they suffer from true financial hardship and are simply unable to repay.

Discussion

Literature in experimental economics and psychology often finds impacts of promises and explicit honor pledges on behavior, and in particular on reducing dishonest behavior. However, the results of this field experiment suggest no meaningful effects from an explicit promise (and indeed, a salient promise) on loan repayment behavior in a real-world setting, with money at stake. Furthermore, a self-written honor pledge was no more efficacious than any other, and altering the salience of the honor pledge, both at loan initiation and in reminder emails, had negligible impacts on outcomes. In other words, I find no evidence for the hypotheses that salience, reminders, or personalization strengthen the impact of a promise on behavior.  Indeed, the results of the study suggest that online loan repayment is a domain where such behavioral tools do not have an impact on decisions. This is a significant result, because it provides insights into why borrowers might fail to repay loans; most notably, it suggests that the failure to repay short-term loans may not be a question of dishonest behavior or behavioral biases, but rather an indication of true financial hardship. Simply put, when repayment is not financially possible, framing, reminders, or other interventions utilizing behavioral science are of limited use.

A pdf of the research is here.

The Moral Injury of Pardoning War Crimes

The Editorial Board
The New York Times
Originally posted 22 Nov 19

Here is an excerpt:

That Mr. Trump would pardon men accused or convicted of war crimes should come as little surprise, given that he campaigned on promises to torture the nation’s enemies and kill their families. Mr. Trump in May became the first modern president to pardon a person convicted of war crimes, when he pardoned Michael Behenna, a former Army lieutenant, who had been convicted of killing a prisoner in Iraq.

The president may think he’s supporting men and women in uniform. “When our soldiers have to fight for our country, I want to give them the confidence to fight,” he said in a statement issued by the White House. “We train our boys to be killing machines, then prosecute them when they kill!” he said on Twitter last month.

Whatever the reason, absolving people who commit war crimes does great harm to society in general, and the men and women who served honorably — as far more than “killing machines” — in the wars since the Sept. 11 terrorist attacks in particular.

A nation has to know that military action being taken in its name follows morally defensible rules — that soldiers do not, for instance, kill unarmed civilians or prisoners.

To excuse men who have so flagrantly violated those rules — to treat them as heroes, even — is to cast the idea of just war to the winds. It puts the nation and veterans at risk of moral injury, the shattering of a moral compass.

One of the loudest groups pushing for Mr. Trump’s pardons was United American Patriots, a nonprofit organization that supports numerous soldiers accused of crimes, including Mr. Lorance, Mr. Behenna and Major Golsteyn. Last month, Chief Gallagher sued two of his former lawyers and United American Patriots, alleging that his lawyers tried to delay the case to increase fund-raising for the organization.

Supporters of the pardoned men say the military justice system comes down too hard and too often on honorable soldiers fighting through the fog of war. That wouldn’t explain why United American Patriots has made a cause célèbre of Robert Bales, who pleaded guilty to slaughtering 16 Afghan civilians in their homes during a one-man nighttime rampage in 2012.

The info is here.

Microaggression and Moral Cultures

By Bradley Campbell and Jason Manning
Comparative Sociology 13 (2014) 692–726

Here is an except:

A culture of victimhood is one characterized by concern with status and sensitivity to slight combined with a heavy reliance on third parties. People are intolerant of insults, even if unintentional, and react by bringing them to the attention of authorities or to the public at large. Domination is the main form of deviance, and victimization a way of attracting sympathy, so rather than emphasize either their strength or inner worth, the aggrieved emphasize their oppression and social marginalization. This culture shares some characteristics and conditions with the culture of dignity out of which it evolved, and it may even be viewed as a variant of this culture. It emerges in contemporary settings, such as college campuses, that increasingly lack the intimacy and cultural homogeneity that once characterized towns and suburbs, but in which organized authority and public opinion remain as powerful sanctions. Under such conditions complaint to third parties has supplanted both toleration
and negotiation. People increasingly demand help from others, and advertise their oppression as evidence that they deserve respect and assistance. Thus we might call this moral culture a culture of victimhood because the moral status of the victim, at its nadir in honor cultures, has risen to new heights.

The culture of victimhood is currently most entrenched on college campuses, where microaggression complaints are most prevalent. Other ways of campaigning for support from third parties and emphasizing one’s own oppression – from protest demonstrations to the invented victimization of
hate-crime hoaxes – are prevalent in this setting as well.

The entire article is here.