Toward An Understanding of the Economics of Apologies
Evidence from a Large-Scale Natural Field Experiment
Bibliographic Data
| ID | 9712788 |
|---|---|
| Authors | Basil Halperin (Massachusetts Institute of Technology), Berching Ho (0000-0001-9728-6444, Vassar College), Benjamin Ho (Vassar College), John A List (0000-0002-1740-3848, University of Chicago & NBER, USA), Ian Muir (Lyft (United States)) |
| Year | 2022 |
| Volume | 132 |
| Issue | 641 |
| Pages | 273-298 |
| Publication date | 2022-01-07 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueab062 |
| OpenAlex | W3124564694 |
| Language | EN |
| Citations received | 5 |
| References cited | 23 |
We use a theory of apologies to design a nationwide field experiment involving 1.5 million Uber ridesharing consumers who experienced late rides. Several insights emerge. First, apologies are not a panacea—the efficacy of an apology and whether it may backfire depend on how the apology is made. Second, across treatments, money speaks louder than words—the best form of apology is to include a coupon for a future trip. Third, in some cases sending an apology is worse than sending nothing at all, particularly for repeated apologies and apologies that promise to do better. For firms, caveat venditor should be the rule when considering apologies
Advertising · Business · Coupon · Economics · Epistemology · Field (mathematics · Geography · Natural (archaeology · Nothing · Panacea (medicine · Positive economics · Scale (ratio · Experimental Behavioral Economics Studies · Finance · Forgiveness and Related Behaviors · History · Philosophy · Psychology · Taxation and Compliance Studies
A theory of sequential reciprocity
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The Hidden Costs and Returns of Incentives—Trust and Trustworthiness among Ceos
Understanding Social Preferences with Simple Tests
Promises and lies
Removing the Shadow of Suspicion
Promises and Partnership
The Gender Earnings Gap in the Gig Economy
Trust, Reciprocity, and Social History
Are costly apologies universally perceived as being sincere
Cultural Differences in the Function and Meaning of Apologies
What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World
When Good Brands Do Bad
| Citations per year | 2.5 |
|---|---|
| Citation span | 2024 - 2025 (2) |
| Highly cited | No |