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In this randomized trial of financial incentives in smokers, both reward-based and deposit-based incentive programs were more effective than usual care in achieving smoking cessation. Reward programs were much more commonly accepted than deposit-based programs.
Financial incentives have been shown to promote a variety of health behaviors.
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For example, in a randomized, clinical trial involving 878 General Electric employees, a bundle of incentives worth $750 for smoking cessation nearly tripled quit rates, from 5.0% to 14.7%,
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and led to a program adapted by General Electric for its U.S. employees.
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Although incentive programs are increasingly used by governments, employers, and insurers to motivate changes in health behavior,
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their design is usually based on the traditional economic assumption that the size of the incentive determines its effectiveness. In contrast, behavioral economic theory suggests that incentives . . .