Status incentive and peer spillover effects on physical activity habits

Abstract

We examine the impact of status-based threshold incentives on physical activity habits using a longitudinal data set from a private health and life insurance provider in the United Kingdom. We find that status-based incentives effectively foster sustained behavioral change, persisting even after the incentive is removed. We find variations in responses based on status goal levels and peer influence within member group sets. These findings suggest that status-driven incentives are particularly effective among individuals with weaker pre-existing habits, reinforcing the importance of social comparisons and goal gradient effects in shaping behavior. Our results contribute to the broader literature on threshold incentives, habit formation, and peer spillover effects in physical activity.