News Release

Show them the money: Pay the vaccine-hesitant to get their COVID-19 shots

Peer-Reviewed Publication

University of Toronto, Rotman School of Management

Vivek Nandur

image: Vivek Nandur is a PhD student in marketing at the University of Toronto's Rotman School of Management. His areas of research include neuroeconomics, behavioural economics, and industrial organization. view more 

Credit: Vivek Nandur

Toronto – Never dismiss the power of money to persuade. A study initiated before the rollout of COVID-19 vaccines has found that a $1000 incentive for the vaccine-hesitant could boost vaccine rates up to 87 percent. 

At the time, that number was considered sufficient to confer herd immunity. With COVID-19 variants now proliferating globally, notions of herd immunity have changed. But the authors say their findings are still valuable, given that much of the developing world has yet to become fully vaccinated, and as public health officials continue to encourage vaccination as a powerful tool against serious health effects. 

“It’s even a bigger question than vaccines and COVID. This is part of a larger set of ​dilemmas called collective action problems – such as how do we convince people to take action to mitigate climate change,” says Vivek Nandur, a doctoral student in behavioural economics at the University of Toronto’s Rotman School of Management and one of three study co-authors. “This speaks to that and how monetary incentives can be used to influence larger behaviour change.” 

Some 2,500 study participants, recruited online in December 2020, were asked if they planned to get the vaccine or, if they would accept it under one of three conditions – if it were free, if it was effective against COVID-19, or if it had no side effects., 

Those who answered “yes” varied from 68 percent in the “free vaccine” category to 75 percent for those in the “no side effects” group. Some 70 percent of participants in the no conditions group said they would get vaccinated. 

All participants who answered “no,” were then asked how much money would incentivize them to accept the vaccine. A $500 cash incentive brought the percentage of vaccine willing up to 80 percent. But the $1000 cash incentive, the maximum, raised that figure to nearly 87 percent. 

Between 13 and 15 percent of participants were unwilling to accept the vaccine under any circumstances. But Nandur said the results support other findings that show that the vaccine hesitant are not a homogeneous group and that public health strategies need to be similarly nuanced and targeted. Even cash incentives are not a panacea, and can potentially backfire, given other conditions. 

As one example, “offering the vaccine for free in our experiment seems to make people a bit warier, which is confusing and likely needs more examination,” Nandur said. 

Money aside, people were more willing to take the vaccine if it was shown as effective against COVID-19, or had no side effects. Hesitancy was stronger among younger people than older ones, and among political conservatives. 

The study was published in Humanities and Social Sciences Communications.

Nandur co-authored the study with David Soberman, a professor of marketing and the Canadian National Chair of Strategic Marketing at the Rotman School, and Ganesh Iyer of the Haas School of Business at the University of Berkley.

The researchers have since looked at the effects of a 2021 policy by the government of West Virginia to offer $100 savings bonds to people aged 16 to 35 who get vaccinated. The policy was introduced to boost the state’s lagging vaccination rate from 52 to beyond 70 percent.

Bringing together high-impact faculty research and thought leadership on one searchable platform, the new Rotman Insights Hub offers articles, podcasts, opinions, books and videos representing the latest in management thinking and providing insights into the key issues facing business and society. Visit www.rotman.utoronto.ca/insightshub.

The Rotman School of Management is part of the University of Toronto, a global centre of research and teaching excellence at the heart of Canada’s commercial capital. Rotman is a catalyst for transformative learning, insights and public engagement, bringing together diverse views and initiatives around a defining purpose: to create value for business and society. For more information, visit www.rotman.utoronto.ca

-30-

For more information:

Ken McGuffin

Manager, Media Relations

Rotman School of Management

University of Toronto

E-mail:mcguffin@rotman.utoronto.ca

 


Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert system.