Abstract

We document how imperfect information generates heterogeneous effects in information treatments with personalized high-frequency feedback and peer comparisons. In our field experiment in retail electricity, we find that high and low energy users symmetrically underestimate and overestimate their relative energy use pre-treatment. Responses to personalized feedback, however, are asymmetric. Households that overestimate their relative use and low users both respond by consuming more. These boomerang effects provide evidence that peer-comparison information programs, even those coupled with normative comparisons, are not guaranteed to lead to increases in prosocial behavior. JEL Codes: C93, D12, D83, L94, Q41

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