ABSTRACT. Worldwide, an increasing number of retailers are implementing checkout-free shopping technology into their stores. This technology uses AI-enabled sensors and cameras to track automatically which products customers take from or return to the shelves. After shopping, customers can leave the store without stopping at a register. Their account will be automatically charged, and they receive a digital receipt via the checkout-free shopping app on their smartphone. Companies hope that checkout-free shopping can increase profits by decreasing labor costs. The gathered data can also help them tailor their marketing and product range to customers' shopping behavior. Additionally, they want to remove customer hassles at the checkout, thereby improving the customer journey. Despite the accessibility of checkout-free shopping to millions of consumers around the world, research on the psychological effects of checkout-free shopping on consumers’ cognitions and behavior is still scarce. One crucial psychological concept currently overlooked is payment transparency, i.e., the salience of giving up financial resources when paying. We propose that checkout-free shopping decreases payment transparency. That is because a conventional checkout consists of multiple opportunities for customers to interact with products and their prices: Customers put their products on the belt and see the products getting scanned. They see the individual prices and the total price on the checkout display. They also interact with a payment method of their choice and pack their products into a shopping bag. Eliminating these steps should lead to reduced payment transparency in checkout-free stores. Decreased payment transparency can influence the consumer experience during and beyond the shopping trip. Research on payment methods suggests that reduced payment transparency can lead to a biased price perception and adversely affects consumers' price recall. In line with that, we propose that the reduced payment transparency in checkout-free stores should influence consumers’ price perception. More precisely, consumers should perceive prices in a checkout-free store as being cheaper than prices in other stores. Further, we propose that the reduced payment transparency in checkout-free stores diminishes the recall accuracy of prices. Price recall accuracy should be diminished not only for purchased products but also for unpurchased products. That is because the reduced payment transparency should shift consumers’ focus away from prices during the product selection and the payment phase. To test our predictions, we conducted a pre-registered incentivized between-subject experiment. We collected data from N = 150 participants to investigate whether checkout-free shopping decreases payment transparency, which then leads to a more favorable price perception (i.e., prices are perceived as being cheaper than in other stores) and decreases the recall accuracy of prices (i.e., the total spending amount, prices of purchased products, and prices of unpurchased products). Participants were randomly assigned to shop either in a conventional or a checkout-free simulated store. Therefore, we built up a store that could be converted from conventional to checkout-free and vice versa in our laboratory. The participants’ task was a shopping trip using a general shopping list that contained the three product categories available in the store (chocolate, strawberry jam, spaghetti). According to that shopping list, participants should purchase one item from each product category. Participants received either a payment card or a virtual payment account with a €10 budget for their expenses. To incentivize participants to make realistic choices, 10% could win their shopping basket and the remaining budget. After their shopping trip, participants returned to the reporting room, where they had to recall the prices of all individual products and their overall basket total. To incentivize participants to recall the prices as accurately as possible, the top 10% were rewarded with a €10 bonus. Further, participants had to complete items on price perception and payment transparency.

We analyzed the data using multi-level analyses. Results indicate that checkout-free shopping significantly increased the recall error for prices of purchased products and the total spending amount. For purchased products, the price recall error was 5 percentage points higher in the checkout-free shopping group than in the conventional checkout group. For the total spending amount, the recall error increased by 10 percentage points in the checkout-free shopping group. These effects are further illustrated by the finding that 24 participants in the conventional checkout group could recall their exact total spending amount, while only 4 participants in the checkout-free shopping group could do so. Results further indicate that the effect of checkout-free shopping on the recall error for prices of purchased products and the overall basket total was significantly mediated by reduced payment transparency in checkout-free stores. However, results do not support the proposed effect of checkout-free shopping on the recall for prices of unpurchased products or the general price perception.

Our findings have implications for theory and practice. First, we extend the payment transparency literature by showing that not only the actual payment but the entire checkout-process matters for payment transparency. Second, we provide several practical implications. The reduced payment transparency in checkout-free stores leads to a biased memory of expenditures; however, consumers need correct memory of expenditures to monitor their budgets. Policymakers should protect consumers from losing their budget overview. Additionally, consumers could use tools like budget planners to increase their financial overview. From a managerial perspective, these findings are relevant as consumers might avoid checkout-free stores altogether to control their spending. To counteract this, managers could install measures to increase consumers’ budget overview, for example, by using haptic feedback in the checkout-free shopping app that informs the customer about their purchase. Thereby, consumers’ acceptance of checkout-free shopping could be increased.

ABSTRACT. Dynamic pricing is a pricing strategy widely employed across various sectors, including (online-)retail, travel bookings, or the purchase of everyday goods. It refers to adjusting prices based on several factors, such as supply and demand, product availability, or consumer-specific data. With the ongoing advancement of digital technologies that analyze market conditions and customer behavior, dynamic pricing strategies have become highly relevant as sellers can adjust prices almost in real time. Previous research has primarily highlighted the negative effects of dynamic pricing on consumers’ purchase intentions and their perception of the sellers’ integrity. Numerous studies have shown that dynamic pricing reduces consumers’ fairness perception and trust toward the seller, leading to decreased purchase intentions, negative word of mouth, and more complaints or refund claims. Only a few studies have shown conditions when purchase intentions are not reduced: When consumers perceive dynamic prices as sufficiently high discounts, the pricing process as transparent, or attribute price changes to themselves. However, despite the generally negative effects, economic data shows that sellers can increase their revenues using dynamic pricing, suggesting that additional psychological mechanisms may be relevant.

We propose a conceptual framework that explores consumer reactions to dynamic pricing and identifies open research areas, outlining future research directions. The aim is to provide a comprehensive perspective on consumers’ reactions to dynamic pricing and to contribute to understanding the underlying psychological mechanisms shaping consumers’ emotions, cognitions, and behavior. Our framework is organized to account for psychological effects at both pre-purchase and post-purchase stages.

Regarding the pre-purchase stage, previous studies on purchase intentions have mainly examined the negative impact of dynamic price increases. However, less is known about the effects of dynamic price decreases that may influence consumers’ perceptions and purchase intentions differently. A relevant question is whether emotional reactions to price decreases are merely the opposite of those induced by price increases, or whether distinct psychological mechanisms underlie these responses. For example, if a price increase leads to a loss of trust in the seller, does a price decrease lead to a corresponding gain in trust? Price decreases may lead to emotions like surprise, pride, joy, confidence, or the satisfaction of finding a good deal. These emotions may be relevant not only for their valence but for their specific attributions. There is also little knowledge about the conditions where dynamic pricing (both price increases and decreases) potentially leads to positive consumer reactions. One important factor could be consumers’ feelings of control. Frequent and non-transparent price changes make it difficult for them to predict future price developments. However, if consumers believe they can influence their displayed prices (e.g., by using different devices or timing their purchases strategically), their feelings of control may increase. This may in turn lead to a greater acceptance of dynamic pricing. Other product- and context-related factors may also play a significant role in the perception of dynamic pricing. Do consumers perceive dynamic pricing as more justified for hedonic (vs. utilitarian) or green (vs. non-green) products? How do consumers interpret the sellers’ communication strategies of dynamic pricing in different contexts? Do consumer reactions differ between online and offline contexts? Dynamic pricing in grocery stores may feel more arbitrary as price adjustments are not personalized and consumers make typically immediate purchase decisions without observing price fluctuations over time.

Regarding the post-purchase stage, consumer reactions have been less explored so far. However, they are highly relevant as they influence future purchase behavior, long-term consumer attitudes, and the customer lifetime value. One important aspect refers to emotions consumers experience when they have recently completed a purchase, and later find the same product at a lower or higher price. For example, a price decrease may lead to frustration, anger, or regret, as consumers may think they paid an unjustifiably higher price. In contrast, a later price increase may lead to relief or pleasure, as consumers may feel they got a good offer. Two key questions are whether emotional responses to price changes after a purchase mirror those before, and whether these responses are more intense as the transaction is already completed and irreversible. Emotional reactions after the purchase may shape re-purchase intentions, word-of-mouth, or brand-switching behavior. The long-term effects of these emotions may influence consumers’ engagement with the brand, their loyalty, and attitudes toward the brand. Other important aspects are consumers’ perceptions of the seller, and potential strategies retailers can use to improve these perceptions and to build trust. For example, price-tracking tools may offer consumers a higher price transparency and a higher feeling of control. However, these tools may backfire if consumers see how frequently prices are adjusted, making the pricing strategy seem even more unpredictable and unfair. Finally, two underexplored areas of dynamic pricing are consumer heuristics for predicting future price fluctuations and the learning effects after experiencing dynamic pricing. These areas may provide insights into how consumers adapt their expectations and decision-making processes.

To summarize, our conceptual framework offers a comprehensive perspective on consumers' reactions to dynamic pricing across different stages of their purchase decisions. The framework highlights open questions for future research by identifying potential underlying psychological effects and mechanisms.

ABSTRACT. When a majority of the population supports a certain policy objective, policymakers are left with the task of implementing a policy that works toward that objective. They have a wide range of measures to choose from and can decide, among others, between price-based and regulatory policies. As the successful implementation of public policies depends on the public’s acceptance of the policy (Grelle and Hofmann, 2024), it is important to study the public’s policy preferences. The choice between regulatory and price-based policies may be driven by a trade-off between financial burden and freedom: While price-based policies impose a financial burden on individuals but still allow them to continue the behavior the policy seeks to reduce, regulatory policies restrict the freedom but many individuals perceive that there is no direct financial cost associated with the policy. This study investigates the public’s policy preferences by having individuals choose between a regulatory and a price-based policy for different price level, where both policies aim at the same policy objective. We focus on two policy objectives concerning everyday life that have been discussed in the media, namely (1) reducing car traffic in city centers and (2) reducing sugar consumption from soft drinks. Our survey experiment, conducted with a general population sample of over 4,000 Germans, contributes to the literature on policy acceptance in three ways. First, studying policy preferences in two contexts allows us to examine their context-dependency as policy acceptance may vary across context (Carlsson et al., 2024; Diepeveen et al., 2013). Second, we elicit policy preferences for price-based versus regulatory policies in a novel way. Instead of comparing support for different policies (see e.g., Dechezleprêtre et al., 2022; Hagmann et al., 2018), we ask respondents to choose between a price-based and a regulatory policy. Our pre-registered survey experiment varies (1) the price level of the price-based policy and (2) the regulatory policy and its intrusiveness. This allows us to examine the extent to which policy preferences depend on the policy characteristics. Third, by conducting an information provision experiment, we can draw causal conclusions about how perceived effectiveness and perceived distributional consequences, key factors in policy acceptance (e.g., Grelle and Hofmann, 2024), shape policy preferences. Within each context (sugar consumption/car traffic in city centers), respondents are presented with two choice situations, in which they are asked to indicate their preference for a price-based policy versus a regulatory policy toward the same policy objective. Between the two choice situations in a context, the price-based policy remains constant whereas the regulatory policy (and its intrusiveness) varies. Each choice situation consists of five individual choices between the regulatory and the price-based policy, with the price of the price-based policy gradually increasing in a multiple price list (MPL) format. In the information provision experiment, the high-effectiveness and low-effectiveness treatments provide respondents with estimates of the effect of the price-based policy at the lowest price level from the MPL, while the regressivity treatment provides the respondents with information about possible regressive effects of the price-based policy. The control group receives no additional information. In all choice situations, policy preferences do not depend on the price level of the price-based policy for more than 40 percent of respondents: the ”always regulatory” group comprises between 20 and to 50 percent of individuals, while 15 to 25 percent of individuals always choose the price-based policy. Almost one-tenth of the respondents always choose either the price-based policy or always the regulatory policy for all price levels in all four choice situations. However, we also observe that for many individuals, the price level determines policy preferences. Between 10 and 25 percent of respondents switch from preferring the price-based policy to preferring the regulatory policy as the price rises. Conversely, 5 to 15 percent of respondents prefer the regulatory policy when the price is low, but switch to the price-based policy at a high price. To further investigate policy preferences, we use several multinomial logit models. We find that the policy preferences are context-dependent. In the car traffic context, a significantly lower proportion always chooses regulatory and switches from regulatory to price-based as the price level increases, and a significantly higher proportion always chooses price-based and switches from price-based to regulatory. This context-dependency may reflect differences in the perceived necessity of the behavior that is supposed to be reduced: sugar consumption may be regarded as more of a choice, making high prices more acceptable, while car use may be regarded as more of a necessity. In both contexts, a significantly higher proportion of the control group always chooses the regulatory policy and a significantly lower proportion always chooses the price-based policy when the regulatory policy is more intrusive. This suggests that the preference for the regulatory over the price-based policy increases with the intrusiveness of the regulatory policy as respondents perceive the intrusive policy to be more effective. For our information provision experiment, we find that providing respondents with a high effect estimate of the price-based policy treatment reduces the proportion of respondents who always prefer the regulatory policy and increases the share of respondents who switch from the price-based policy to the regulatory policy as the price rises. We interpret this as the high-effectiveness treatment demonstrating that the price-based policy is effective even at a low price and thus increasing the support for the price-based policy at low prices, possibly because respondents who previously preferred the regulatory policy at all prices now prefer the price-based policy at low prices. The regressivity treatment reduces the share of respondents who always prefer the price-based policy in the car traffic context but not in the sugar context.

ABSTRACT. The topic of money as a vehicle of deep meanings that go beyond its purely economic functions has been widely debated. The psychological nature of money, in fact, influences individuals in several ways, from daily financial resource management strategies to the level of job satisfaction. However, research on vulnerable populations, such as incarcerated individuals or addicts, remains very limited, despite the pivotal role of money in orienting personal histories of addiction and social marginalization. This study explores the affective and symbolic meanings of money among incarcerated individuals diagnosed with gambling or substance use disorders. Specifically, two constructs were investigated: the social representation of money and the measurement of attitudes toward money. Social representations are forms of knowledge shared within a group, arising from social interaction and communication, and reflecting the specific socio-economic-cultural context in which individuals are situated. Attitudes towards money, on the other hand, are connected to the deep meanings that people attribute to it. A secondary aim of the study is to compare these findings with samples from the Italian general population to understand potential differences in money perception across groups. The research was conducted as a collaboration between the Catholic University of Milan and the Ser.D. inside the Milano-Bollate Penitentiary Institute (an Addiction Prison Service focused on therapeutical programs related to substance abuse and problem gambling). Data were collected through paper-and-pencil questionnaires. Qualitative data were gathered to investigate social representations by means of a free association task, while likert scales were employed to assess impulsiveness, money attitudes, and problem gambling. As concerns the social representation of money, prototypical analysis and correspondence analysis were performed. T-test and ANOVAs were used to conduct comparative analyses between the incarcerated population and the Italian general population to identify similarities and divergences in the meaning of money. Findings suggest that money assumes a rich symbolic role in the incarcerated group, often associated with themes of pleasure and social status, immediate desires and greed. Compared to the general population, the incarcerated group exhibited more polarized attitudes toward money, disengaged from future planning and stability. This present-focused and polarized view of money among inmates could represent a potential drive to crimes or a possible obstacle to social reintegration. By understanding the unique money attitudes within this group, policymakers and practitioners can develop more effective support strategies to foster financial health, crime desistance and social reintegration, thereby promoting the overall well-being of inmates and their families.

ABSTRACT. The building sector is the largest consumer of energy and one of the main sources of greenhouse gas emissions in France. Energy renovation presents a dual environmental and social benefit for public authorities by reducing both energy demand and fuel poverty. Without substantial efforts in energy renovation, achieving carbon neutrality by 2050 will be impossible. This is why the French government has set ambitious targets for building energy renovation, supported by various policy initiatives. The goal is to incentivize homeowners to undertake high-level energy-efficient renovations. However, the current rate of renovations remains too slow to meet these objectives. One of the primary reasons cited by policymakers is the prohibitive residual cost of efficient renovations, despite the possibility of combining multiple subsidies, which leaves bank loans as the only viable alternative (but unfortunately, they are not accessible to all households). This poses a challenge from a policy perspective, as more extensive and costly renovations increase both projected energy savings and the likelihood of achieving these savings. The issue of residual costs is critical because it is intertwined with non-financial market barriers such as information asymmetry, which creates a lack of trust in renovation professionals and their ability to deliver promised energy savings. This, in turn, reinforces a status quo bias among homeowners. Despite these challenges, few studies have thoroughly examined the financial and trust-related barriers that households face when undertaking comprehensive renovations. The objective of this study is to analyze homeowners’ decision-making in a framework of zero out-of-pocket expenses and reduced uncertainty regarding renovation outcomes. The study examines two financing mechanisms for energy renovation: third-party financing and mortgage-based financing. In the third-party financing model, an external entity covers the entire renovation cost. The homeowner repays this entity through a contract that stipulates reimbursement based on a share of energy savings, aligning the third party’s interests with the effectiveness of the renovation. In the mortgage-based financing model, repayment is deferred until the property is sold, with an interest rate that is adjusted every ten years. The study relies on a survey conducted in the spring of 2024 using Verian’s Public Voice probabilistic panel, involving 513 respondents (owner-occupiers of detached houses). A single adult per household was interviewed to gather information on household characteristics such as income and social class, home characteristics including size, region, and urbanization level, past renovation activities, awareness of renovation grants, the home’s energy performance certificate rating, perceptions of comfort, and expectations regarding future energy costs. Following this survey, participants completed a Discrete Choice Experiment to assess their renovation preferences under different financing conditions. Respondents were randomly divided into two groups, with one being introduced to the third-party financing option and the other to the mortgage-backed financing model. Each group evaluated twelve hypothetical renovation scenarios and chose among three options: undertaking a single renovation action, carrying out multiple actions or a full renovation, or doing nothing. Each option was described based on attributes such as renovation cost, projected energy savings, comfort improvement, the presence of a financing operator, and the involvement of a global renovation operator. These attributes varied across different scenarios. Multinomial logit models were then used to estimate the probability of homeowners choosing partial or full renovations over doing nothing. The preliminary survey results showed that half of owner-occupiers experience cold or dampness in their homes despite previous renovations. Additionally, eighty-eight percent of respondents expect energy prices to rise, and sixty percent express concern over their energy bills. Given these factors, the persistence of low renovation rates is puzzling. Lack of awareness of financial assistance does not appear to be the primary barrier, as seventy-eight percent of households are familiar with the MaPrimeRénov (https://www.service-public.fr/particuliers/vosdroits/F35083?lang=en) scheme and between thirty and forty percent are aware of other financial aid programs. As expected, higher renovation costs reduce the likelihood of homeowners opting for renovations, while higher projected energy savings increase this probability. Households with higher energy bills are also more inclined to undertake renovations. Risk aversion is another significant determinant, with more risk-averse homeowners being less likely to invest in energy efficiency renovations. The involvement of a renovation manager-operator increases the probability of renovations being carried out, as this entity assumes the risk that the costs will not be fully offset by future energy savings. Respondents in the third-party financing group demonstrated a greater willingness to undertake expensive renovation work compared to those in the mortgage-based financing group. This suggests that third-party financing significantly alleviates financial risk for households, whereas mortgage-backed financing does not offer the same level of perceived security. Comfort improvements did not have a statistically significant effect on renovation decisions in the initial estimates, likely due to the complexity of how comfort perceptions influence decision-making. However, gender differences emerged, with women being more likely than men to choose full renovations over no renovation. In the mortgage group, homeowners with larger properties were more likely to opt for renovations. This study is the first to assess household preferences regarding renovation financing mechanisms and the role of a global renovation operator. The findings highlight the critical importance of these financing models in promoting energy efficiency renovations, especially as renovation subsidies are set to decrease. In early 2025, the MaPrimeRénov program will be scaled back, significantly reducing financial aid for targeted renovations and increasing homeowners’ out-of-pocket costs. As demonstrated by this study, higher upfront costs are a decisive factor in renovation decisions, and the reduction in subsidies is likely to delay or stagger renovation efforts. Furthermore, financial support for higher-income households will also be reduced, potentially causing additional delays in renovation projects. The results indicate that third-party financing, which eliminates upfront costs, significantly increases the likelihood of homeowners undertaking comprehensive renovations. These findings provide valuable insights for policymakers in designing future energy renovation incentives. By reducing financial constraints, particularly through third-party financing, it is possible to accelerate energy efficiency improvements in the residential sector and move closer to achieving national and European carbon neutrality targets.

ABSTRACT. It has been more than three years since the start of the Russia-Ukraine war. With the onset of the war between Russia and Ukraine in February 2022, we have witnessed extensive changes in the European economy and global energy markets. In fact, it caused a huge negative shock in the energy market (and many other markets, including the food market) worldwide. The successive sanctions imposed by the European Union and its allies, such as the United States, Japan, and South Korea, have altered Russia’s energy consumption patterns, oil imports/exports, and target markets. Countries and allies of Russia, such as China, purchase energy-related goods from Russia at low prices and in high volumes. Additionally, Turkey’s fluctuating policy, which leverages its geopolitical position regarding energy supply to the European Union, has also played an important role. Turkey’s geopolitical stance, which does not fully align with the democratic values of the European Union, along with India’s continued import of energy from Russia, has somewhat mitigated the impact of the sanctions.

As time progresses, the effects of these sanctions are becoming increasingly evident in the Russian economy and the volume of energy, it exports. Concurrently, the European Union has made significant efforts to restrict energy imports from Russia, set price caps on energy-related products from Russia, enhance the use of renewable energy, conserve fossil fuels, and import energy from allied countries. In essence, Russia’s military aggression against Ukraine has acted as a catalyst, accelerating the achievement of major projects such as the European Green Deal (EGD) and REPowerEU. It is anticipated that, shortly, the European Union will achieve less dependence on fossil fuels and will considerably increase the production of green and renewable energies.

Initially, Americans and their Europeans allies strongly believed that their sanctions would have a huge effect on the Russian economy and would convince Russia to end their attack on Ukraine after a few months, if not weeks. On the other hand, Russians and their allies believed that the energy crisis in Europe would force the US and EU to put pressure on Ukraine to accept a peace agreement with a significant loss of territory. Both sides of this conflict proved to be wrong, and the conflict is continuing, even after more than three years. It seems that both sides of this conflict and their allies have miscalculated their abilities and at the same time, both sides have executed some type of “plan B” options that were not completely anticipated by their opponents. These plan B’s have led to extending the duration of the conflict beyond what was originally anticipated, which in turn leads to more losses of lives and economic resources. In this paper/presentation, we discuss the abovementioned shifts in the behaviors as well as actions and reactions of both sides of this conflict and their consequences with respect to the energy market in more detail.

ABSTRACT. We live in an age defined by quantity. Our smart devices contain technology that would have required a van decades ago, functioning as phones, cameras, video recorders, and music players. We take more photos and send countless messages, yet seldom delete or organize our media. Consequently, vast amounts of images, videos, and social media content accumulate in data centers. With low-cost cloud services, our devices automatically upload files, often leading to forgotten and unused content, while individuals’ digital behaviour data is stored as log files. It’s estimated that 90% of data stored in cloud services is never reused (Morley et al., 2018), comprising largely of useless or outdated information that offers no value to individuals or organizations. This excess can be classified as digital data waste.

Digital data waste is generated by individuals, companies and organizations that store data often without knowing its future use. The belief that "data is the new gold" has led many to store data "just in case," including structured, unstructured, and "dark data" — the latter being unstructured content kept without a clear purpose and often considered digital waste. Al Kez et al., 2022 highlight that if dark data is improperly managed, it could lead to a significant global carbon, water, and land footprint.

Digitalization has an increasing negative impact on climate change. As human behaviour is the main cause of climate change, human behaviour is also the key in responding and adapting to it (Clayton et al., 2015).

The success of policies mitigating environmental problems depends on whether they motivate individuals, households, and organizations to make more sustainable decisions. Human decision-making is often influenced by limited resources, shortsightedness, and consideration of others' well-being. These behavioural biases affect consumption, investment decisions, and compliance with environmental regulations (OECD, 2017). The cumulation of digital waste depends on collective and individual decision-making and behaviour. Thus, digital waste and pro-environmental digitalization need to be addressed by individual frames and system-level interventions, as categorized by Chater & Loewenstein (2023).

The issue of digital data waste is complex and characterised by multi-layered interdependencies. Many activities to store data in cloud storage are automated – the cloud services automatically upload data to cloud storage and log files about our digital activities (e.g., ordering food online and ride-hailing services) accumulate without individuals realising it. As individuals are used to automated activities, one can assume that if corporations and organisations providing innovative solutions set the default settings with pro-environmental principles, it would accumulate less unused digital data. Default options are known as pre-selected choices that take effect if an individual does not make an active decision to choose an alternative. Green defaults may help promote environmentally friendly choices (Taube & Vetter, 2019).

The paper presents the results of a qualitative study, including semi-structured interviews with sustainability experts (3 interviews) and IT companies' data managers (up to 10 interviews), as well as focus group interviews with individuals (two focus group interviews with 4-6 persons). The goal is to find out the opportunities and motivations for tech companies and app providers to design their products to minimise the cumulation of digital data waste for an individual. This goal aligns with Environmental, Social, and Governance (ESG) principles; thus, this study integrates the COM-B model with ESG principles. The study results are the basis for the following research aiming to experiment with default choices.

The focus group interviews aim to identify individuals' primary vulnerabilities related to digital waste and explore ways to address and reduce it more easily. Additionally, these interviews assess their awareness of specific default settings that maintain log files of their digital behaviour.

The interview plan will be based on the COM-B behavioural change model (Michie et al., 2011). The COM-B framework asserts that three key elements are necessary for behaviour: a person's capability (C), opportunity (O), and motivation (M) to engage in a specific behaviour (B). Capability refers to psychological and physical abilities, while opportunity pertains to the possibilities presented by the physical or social environment. A person's capability and opportunity influence their motivation, which can be both conscious (reflective) and unconscious (automatic). The ongoing interviews will be coded according to the principles of qualitative content analysis (Mayring, 2015), utilizing the NVivo software for qualitative and mixed-methods research. The coding of the interviews will combine the ESG principles with the COM-B model categories.

Digital data waste and its negative environmental impact remain understudied, particularly regarding climate change. Therefore, this paper seeks to determine how default options can be used to pinpoint effective ways to reduce the accumulation of digital waste without limiting individuals' freedom of choice.

References Al Kez, D., Foley, A. M., Laverty, D., Del Rio, D. F., & Sovacool, B. (2022). Exploring the sustainability challenges facing digitalization and internet data centers: Journal of Cleaner Production. Journal of Cleaner Production, 371. Chater, N., & Loewenstein, G. (2023). The i-frame and the s-frame: How focusing on individual-level solutions has led behavioral public policy astray. Behavioral and Brain Sciences, 46, e147. Clayton, S., Devine-Wright, P., Stern, P. C., Whitmarsh, L., Carrico, A., Steg, L., Swim, J., & Bonnes, M. (2015). Psychological research and global climate change. Nature Climate Change, 5(7), 640–646. Mayring, P. (2015). Qualitative Content Analysis: Theoretical Background and Procedures. In Approaches to Qualitative Research in Mathematics Education (pp. 365–380). Springer, Dordrecht. Michie, S., van Stralen, M. M., & West, R. (2011). The behaviour change wheel: A new method for characterising and designing behaviour change interventions. Implementation Science, 6(1), 42. Morley, J., Widdicks, K., & Hazas, M. (2018). Digitalisation, energy and data demand: The impact of Internet traffic on overall and peak electricity consumption. Energy Research & Social Science, 38, 128–137. OECD. (2017, May 10). Tackling Environmental Problems with the Help of Behavioural Insights. OECD. Taube, O., & Vetter, M. (2019). How green defaults promote environmentally friendly decisions: Attitude-conditional default acceptance but attitude-unconditional effects on actual choices. Journal of Applied Social Psychology, 49(11), 721–732.

ABSTRACT. Digital credit, typically offered as short-term, high-interest loans through mobile channels, has surged over the last 10 years with millions of registered users across the developing world. By removing traditional barriers to access, digital credit allows consumers to obtain funds quickly, bypassing physical and procedural constraints. However, much like payday loans in developed economies, it is not clear if the benefits of providing liquidity in times of need outweigh the risk of overindebtness and financial distress. These risks are particularly pronounced in this market, since, on the one hand, many consumers are new to credit and often unaware of their loan terms, and, on the other hand, sophisticated providers, aware of this, may have incentives to obfuscate loan terms.

A common policy intervention to help borrowers understand the terms and costs of a loan are standardized disclosures. In traditional credit markets with relatively homogeneous products a case has been made that disclosures centered around the cost of credit can improve welfare by helping borrowers select more affordable options. However, in digital credit markets, where loans can vary significantly beyond cost (e.g., in disbursement speed, approval requirements, and documentation requirements), consumers may prioritize non-price attributes and, consequently, firms have an incentive to differentiate on those. For instance, digital borrowers often value quick disbursement for urgent needs. Further, minimal documentation requirements with high approval rates can justify high rates for those with limited options. In a market where both firms and consumers care about attribute heterogeneity, standardized disclosures based purely on cost could inadvertently create barriers to the best product match, limiting their potential benefits.

In this paper, we study how various disclosures of price and non-price attributes impact consumer choice in the Philippine digital credit market. We first conduct a census of digital credit products to identify the extent of price shrouding in the market. We then present results from a pre-registered online discrete choice experiment with 4,000 prospective digital credit users in which we examine how information standardization and ranking by various price and non-price attributes influence choices and estimate the trade-offs consumers make between these attributes.

In the experiment, participants were randomly assigned to one of eight treatment arms or the control group, and then asked to choose their most preferred option from six hypothetical digital credit products. The products vary across a number of price and non-price attributes, namely: effective interest rate, late payment fee per day, time to disbursement, number of documentary requirements, and probability of approval. The control group, inspired by how digital loans are marketed to consumers in the Philippines, requires participants to hover the mouse over short lines of marketing advertisements to access information on product attributes. In contrast, for all eight treatment arms, the product attributes are presented in a standardized format (i.e., tabular form). The first two treatment arms test the impact of standardization, which involves providing information on product attributes that a regulator might request be presented in fine print. They differ, however, in how the cost of credit is presented: one shows the nominal interest rate and processing fee separately, while the other presents the total cost of credit by collapsing the costs into an effective interest rate. In both treatment arms, the six products are displayed in random order. In the next five treatment arms products are rank-ordered according to one of five attributes. The final treatment arm allows the participant to choose the attribute to rank.

Our analysis uncovers four main findings; in all our regression analyses, we account for multiple hypothesis testing and report both sharpened q-values and Romano-Wolf stepdown adjusted p-values. First, standardizing information leads consumers to choose products with more favorable terms compared to information displayed through traditional marketing campaigns. Specifically, consumers choose digital loans with lower effective interest rate and higher probability of approval, at the expense of longer time to disbursement and additional loan documents. Further, when information is displayed in a standardized format, there is no statistically significant difference between presenting interest rates in effective or nominal terms.

Second, we find that the arrangement of products influences consumer choice. Relative to the condition in which information is standardized but products are presented in random order, displaying products in a rank-ordered manner results in consumers choosing products with more favorable terms on the ranking attribute. For example, ranking the products by effective interest rate results in further reduction in effective interest rate chosen. Additionally, our analysis allows us to quantify how consumers trade-off various price and non-price attributes under different rankings. For example, when ranking by time to disbursement, consumers are willing to accept a 1-hour increase in time to disbursement for a .03 percentage points reduction in the effective interest rate.

Third, after eliciting overconfidence at the individual level, we find that overconfident consumers do not respond to ranking by late payment fee. We measure overconfidence by asking three general knowledge or three financial literacy questions from Lusardi and Mitchell (2014) and comparing participants' self-assessed scores to their actual scores. In both cases, participants who overestimate their scores are flagged as overconfident and, for them, there is no response to ranking by late payment fees, despite reporting a higher probability of past late payments.

Fourth, consistent with the predictions of behavioral contract theory, the census of digital credit products reveals that firms choose not to advertise high-price attributes that arguably are relevant for consumer choice: 36% of products do not explicitly advertise loan fees and 64% do not explicitly advertise how late fees are calculated.

This paper contributes to the literature in three ways. First we contribute to the literature that examines the effect of disclosures on consumer behavior. Second, we contribute to the literature on effectiveness of choice architecture interventions, particularly decision structure interventions, in changing consumer behavior. Third, our results contribute to studies about the role of overconfidence on financial choices and its impact on the effectiveness of consumer protection policies.

ABSTRACT. Borrowing has become a commonplace activity, enabling individuals to achieve various personal and economic goals like education, housing, entrepreneurship, and paying for personal expenses (Espenberg et al., 2021; European Banking Authority, 2023). However, the prevalence of debt, particularly non-mortgage debt, can negatively impact psychological well-being and happiness (Brown et al., 2005; de Bruijn & Antonides, 2020), especially among low- and middle-income individuals (Xiao et al., 2021).

Despite advances in financial technology that have broadened access to formal lending institutions, a significant portion of the population remains excluded from traditional financial services. This can be due to factors such as poor credit history, insufficient collateral, or limited access to banking facilities (Gloukoviezoff, 2007). Consequently, these individuals often turn to the informal lending sector, where they encounter high-interest loans from loan sharks and other predatory lenders (Signal et al., 2012). The informal loan market, characterised by quick access to loans with exorbitant interest rates and exploitative terms, exposes borrowers to severe financial risks and debt spirals (Mendenhall, 2007).

Previous literature has examined alternative functioning loan markets, such as peer-to-peer loans, informal microfinancing and offering high-interest payday loans (institutionalised or not). However, one area has not received any attention – lending groups in social media. One such market is operating in Facebook, where individuals privately seek and provide informal loans. This is a rare case where we can observe an extra-legal loan market in action, as the individuals are giving out loans recurrently and without a credit permit. Furthermore, we can examine the behaviour and attitudes of both the clients and the loan provide.

Our study aims to provide evidence of the Facebook loan market in Estonia as a novel extra-legal loan market, focusing on its dynamics, target audience, credit behaviour, and the interactions between lenders and borrowers. This aim is achieved through qualitative methods, specifically semi-structured interviews, involving 12 lendees, five lenders from the loan marketplace, and five debt counsellors with experience with clients who have borrowed through social media. We also conducted continued observations of new postings in the online group and analysis of previous post data.

Our findings reveal that Facebook loan groups serve as a last resort for borrowers who cannot secure loans through traditional financial institutions. This finding is important in highlighting the market that people turn to when they are unable to be served by mainstream financial providers. The interest rates in the Facebook groups are significantly higher than those offered by regulated credit providers in Estonia - the maximum annual percentage rate (APR) for consumer credit from regulated providers is 52% (Eesti Pank, 2023) but interest rates reported by interviewees and analysed post data averaged around 520%, ten times above the legal limit. This raises concerns about usury and the potential exploitation of vulnerable borrowers. Borrowers were not aware that the interest rate demanded from them is illegal, although they are not under any legal obligation to pay the accrued interest above the stated maximum APR.

Interestingly, it is the lendee who is dictating the interest rate, which is highly unorthodox in other loan markets. Individuals put up their own personal advertisements for obtaining loans, which include how much they are looking to borrow and what they agree to pay back in return. These can include applications with an APR above 10,000%. However, interviewed lenders consider fulfilling these applications as an ethical service they are providing a service for people who require immediate access to credit. When asked about the high interest rates, a common response is that “this is the rate offered by the client”.

Lendees typically used these loans to meet urgent needs towards the end of the month or during emergencies, similarly to the use of payday loans. That said, there were instances of loans being used for consumption purposes, such as purchasing a new car or a crypto miner. The lenders mentioned people being addicted to borrowing money, such as clients wanting to borrow 3 Euros every day.

Moreover, lendees and debt counsellors frequently reported the use of various punishment and intimidation methods, such as lenders posting their clients’ private information in public shaming groups. As lenders obtain a large amount of data from the lendees, including photos of the person holding their ID-card, retirement registry data, bank account information and more, this information can be weaponised to force compliance with the loan contract. On some occasions, lendees faced physical threats by lenders, exacerbating the borrowers’ financial and psychological distress. However, the lenders see the use of such practises as an essential part of ensuring compliance. According to the lenders, around half of their clients remain as “regulars”, indicating a possible spiral of high-interest debt.

This study provides a pioneering exploration of Facebook loan group operations, shedding light on the reasons behind their use, the loan conditions, and the general attitudes towards these platforms. While the study takes place in Estonia, it is likely that similar loan groups exist in other countries as well. However, finding such groups requires in-depth knowledge of the language, as many of the typical search words are censored (such as writing the word “loan” as “lxan”).

The insights gained from this study can inform national institutions and policymakers about the risks associated with this informal lending sector and guide the development of regulations to protect vulnerable borrowers. We also provide a novel examination of the inner workings of an extra-legal loan market, which are notoriously difficult to analyse. The results highlight the need for governments to inform individuals about their rights and obligations when it comes to fulfilling loan contracts, especially in the informal lending sector.

ABSTRACT. Background/Aims: Early intervention tends to produce better outcomes for consumers who are over indebted, yet engagement with debt advice services often occurs as a last resort and research on why individuals delay seeking debt advice has been scant. We explore whether a health psychology model (Model of Pathways to Treatment - MPT; Scott, et al., 2013), designed to explain delays in accessing and avoidance of medical treatment for symptoms of ill health might help us understand why over-indebted individuals often delay seeking debt advice. The MPT divides time-to-start-of-treatment into intervals, each with associated processes and events. There are four such intervals: ‘Appraisal,’ where the individual appraises and self manages their symptoms; ‘Help-Seeking,’ where a decision is made to consult a professional; ‘Diagnostic,’ where investigations and referrals are carried out; and ‘Pre-treatment,’ where treatment is planned. In a mixed method study, we applied the MPT to examine shame, avoidance and concealment through secret keeping as processes impacting decisions made by people with problem debt about advice seeking during the ‘Appraisal’ and ‘Help-Seeking’ intervals. Previous work has shown that over-indebtedness is associated with feelings of financial shame and conscious avoidance (Gladstone et al., 2021) and concealment behaviors (Moorehouse et al., 2023). Our studies will examine whether those psychological processes help explain and predict delays in debt-advice seeking.

Study 1: Study 1 was an exploratory qualitative interview study designed to examine the psychological factors that might impact on timely debt advice-seeking. Twelve over-indebted individuals who were clients of a not-for-profit debt advice agency were purposively sampled for interview once they had agreed on a solution to their debt problems with their debt advisor. The MPT was used in constructing a semi-structured interview guide. Thus, questions were included about processes taking place primarily during the ‘Appraisal’ and ‘Help-Seeking’ intervals.

Study 1 Results: Reflexive thematic analysis underpinned by a relativist ontological approach to inquiry revealed that three overarching themes were consistent across the twelve interviews. Participants experiencing shame due to their over-indebtedness was the first theme, and shame was the most prominent psychological emotion uncovered as negatively influencing on decisions to seek timely debt advice. Experiencing shame appeared to lead to the dysfunctional behaviors of the second and third themes of conscious avoidance and concealment through keeping indebtedness secret. These contributing psychological factors are similar to those discovered to cause delays in advice-seeking in the ‘Appraisal’ interval in the MPT, following discovery of symptoms of ill health. The results of Study 1 suggest that the MPT may be a useful framework to guide investigation of delays in debt advice seeking, and that people explain delays in seeking advice in terms of psychological processes involving shame, avoidance, and secret keeping.

Study 2: To test a model of processes occurring in the ‘Appraisal’ interval in the MPT, we are currently running a study where, in addition to estimating how long it took them to seek debt advice once they realized they were over-indebted, 160 over-indebted participants are completing measures of shame, financial shame, avoidance, financial avoidance and concealment through secret keeping and financial secret keeping (concealment of over-indebtedness through secret keeping). We hypothesize that levels of financial shame will predict delays in seeking debt advice and that the association will be mediated by levels of financial avoidance and financial concealment (keeping indebtedness secret). We anticipate that data collection which is ongoing will be completed by February 2025.

Conclusions: The results of Study 1 suggest that over-indebted individuals explain delays in advice seeking in terms of shame, avoidance and concealment through secret keeping. The results of Study 2 will test a model based on these explanations and will reveal whether the effects of financial shame on delay are mediated by financial avoidance and financial concealment. Study 1 also reveals the utility of the MPT when trying to understand financial help-seeking behavior. Based on these results we intend to develop psychologically based interventions to help over-indebted consumers overcome barriers to debt advice access and engagement.

References Moorhouse, M., Goode, M., Cotte, J., & Widney, J. (2023). Helping those that hide: Anticipated stigmatization drives concealment and a destructive cycle of debt. Journal of Marketing Research, 60(6), 1135-1153.

Gladstone, J. J., Jachimowicz, J. M., Greenberg, A. E., & Galinsky, A. D. (2021). Financial shame spirals: How shame intensifies financial hardship. Organizational Behavior and Human Decision Processes, 167, 42-56.

Scott, S. E., Walter, F. M., Webster, A., Sutton, S., & Emery, J. (2013). The model of pathways to treatment: conceptualization and integration with existing theory. British journal of health psychology, 18(1), 45-65.

ABSTRACT. This study examines how economic incentives embedded in unemployment insurance (UI) scheme affect job search behaviour and unemployment duration. Using micro-level data from the Estonian Unemployment Insurance Fund (2017–2022), we exploit natural experiments created by kinks and discontinuities in the UI system to estimate causal effects.

To identify behavioural responses, we apply a Regression Discontinuity Design (RDD) and Regression Kink Design (RKD). The RD design is considered one of the closest approaches to a randomized trial in non-experimental settings, as it assigns treatment based on a cut-off point in a continuous baseline variable, which is months of UI contributions in our analysis. Individuals just to the right and left of the threshold are assumed to be exchangeable, similar to random assignment. Any observed discontinuity in the relationship between the assignment variable and the outcome, such as duration of unemployment, is therefore interpreted as a causal effect.

In addition to RD, we employ RKD to estimate behavioural responses to economic incentives. RKD exploits changes in the slope of a policy function, the relationship between benefit size and previous wage in our case, to identify causal effects. By observing how unemployment duration responds to these policy kinks, we can recover key behavioural parameters, such as the elasticity of job search effort with respect to benefit generosity.

We examine the impact of benefit duration by comparing individuals who qualify for 180 versus 270 days and those for 270 versus 360 days. Our findings indicate that extending benefits from 180 to 270 days increases unemployment duration by approximately 20 days, consistent with forward-looking job search behaviour. However, no significant effects are found when extending benefits beyond 270 days. For benefit size, we use RKD to analyze how variations in the upper and lower ceilings of UI payments influence unemployment duration. The results suggest no statistically significant impact, indicating that individuals’ job search efforts respond more to time constraints than to financial incentives.

These findings contribute to the literature by demonstrating that while moderate extensions in UI duration influence unemployment spells, additional extensions and changes in benefit levels do not significantly alter search behaviour. The study provides empirical insights into the design of optimal UI policies that balance income support with incentives for re-employment.

ABSTRACT. Article 123 of the Political Constitution of the United Mexican States is one of the most important labor laws. This article establishes the rights and obligations of workers and employers in Mexico, dividing its provisions into two main sections: Section A and Section B. Specifically, point two of Section A is aimed at the "protection of working women," primarily concerning maternity and occupational health. Similarly, Article 170 of the Federal Labor Law states that working women are entitled to a “leave” of six weeks before and six weeks after childbirth, totaling twelve weeks of maternity leave. Regarding breastfeeding, working mothers have the right to two daily breaks, each lasting half an hour, to feed their children in a suitable and clean place designated by the employer. During the prenatal and postnatal leave period, women are entitled to receive their full salary and retain their job along with all associated rights. This topic is highly relevant, as data from the National Institute of Statistics and Geography (INEGI) indicate that in the first quarter of 2024, the economic participation rate of women aged 15 and older was 46%. Meanwhile, the average age for a first pregnancy among women in Mexico is 21 years. Additionally, the Mexican Institute for Competitiveness (IMCO) reports that seven out of ten women participating in the labor market are mothers. Research indicates that the transition to motherhood is associated with significant brain, physiological, endocrinological, and behavioral changes that begin during pregnancy and persist in the postpartum period and long term. The literature on postpartum cognitive function changes is grouped into at least three perspectives: 1. Research suggesting that postpartum women experience "mental fog" (mommy brain/placenta brain). 2. Studies indicating that the decline in cognitive function is a stereotype associated with this stage of women's lives and that the perception of "mental fog" or "cognitive decline" has not been proven. 3. Research supporting the idea that there is no cognitive loss in the postpartum period but rather strengthened and new cognitive strategies. Based on this information, the following question arises: Are women physically and mentally healthy enough to return to work 40 days after giving birth? Thus, the objective of this study is to assess the cognitive functions of women 40 days postpartum. Additionally, another goal is to shed light on the current labor conditions in Mexico for postpartum working women and the physical and mental health challenges they face. In the long run, this study aims to propose public policy recommendations to improve the conditions of women returning to work after childbirth. To achieve this objective, the study will assess the cognitive functions of women 40 days postpartum, as well as the characteristics of their work environments. Reliable and validated instruments will be used. The sample size will depend on access to women who meet these criteria, and statistical analyses will be determined based on the collected sample size (N).

ABSTRACT. This research investigated the effects of caregiving workload and leisure time on mental health, with a particular focus on gender and socioeconomic differences. Under the new presidential administration of Claudia Sheinbaum, gender issues have gained significant attention in political discourse, particularly in the context of mental health. Our findings revealed that women reported lower levels of emotional well-being compared to men, a disparity that can be attributed to structural inequalities embedded within social and cultural systems that perpetuate oppression. The unequal division of labor emerged as a critical factor contributing to this disparity, with women disproportionately responsible for caregiving activities. This imbalance resulted in a greater overall workload for women, significantly limiting their opportunities for leisure and self-care, which in turn adversely affected their mental health. The implementation of a National Care System was proposed as a potential solution to alleviate the caregiving burden on women, thereby promoting their well-being through improved access to necessary services and resources. To address these issues, we formulated the following research question: What is the effect of caregiving workload and leisure time on mental health, considering differences by gender and socioeconomic status? Our analysis utilized public databases in Mexico, including the National Survey for the Care System (ENASIC), the National Time Use Survey (ENUT), and the National Health and Nutrition Survey (ENSANUT). We employed a multiple regression model to analyze the relationships between caregiving responsibilities, leisure time, and mental health outcomes. The statistical analysis yielded several significant results. First, we found that increased caregiving workload was associated with lower mental health scores for women, indicating that the burden of care negatively impacted their emotional well-being. Additionally, our analysis revealed that women from lower socioeconomic backgrounds experienced even greater declines in mental health due to caregiving responsibilities compared to their higher socioeconomic counterparts. This suggests that socioeconomic status plays a critical role in moderating the effects of caregiving on mental health. Furthermore, we discovered that leisure time had a protective effect on mental health outcomes. Women who reported higher levels of leisure time exhibited better emotional well-being, highlighting the importance of self-care opportunities in mitigating the adverse effects of caregiving responsibilities. The interaction between caregiving workload and leisure time revealed that women who struggled to balance these demands were at an increased risk for mental health issues. The implications of our findings are substantial for public policy. The evidence supports the need for a comprehensive National Care System that addresses the unequal distribution of caregiving responsibilities and promotes gender equity in care work. By ensuring access to support services and resources for caregivers, particularly women, policymakers can foster environments conducive to self-care and improved mental health outcomes. Moreover, our research underscores the necessity for institutional and governmental support in implementing policies that facilitate shared caregiving responsibilities between genders. This approach not only empowers women but also contributes to broader societal goals of gender equality and enhanced mental health across populations. In conclusion, this study provides critical insights into the relationship between caregiving workload, leisure time, and mental health among women in Mexico. By addressing these disparities through targeted policy interventions, we can promote better mental health outcomes and enhance overall well-being for caregivers. The establishment of a National Care System represents a vital step toward achieving these objectives and fostering a more equitable society.

ABSTRACT. The COVID-19 pandemic has led many organizations to navigate the complexities of remote work implementation, balancing the preferences of both management and employees. Academic research predominantly supports remote work, with a comprehensive meta-analysis by Gajendran et al. (2024) concluding that remote work is comparable to in-office work across various aspects, and even often presenting significant advantages. The only notable exception identified in previously mentioned meta-study is the heightened sense of isolation experienced by remote workers.

In practice, companies have adopted diverse strategies regarding remote work policies. For instance, Amazon mandates that employees return to the office five days a week starting January 2, 2025 (Amazon is …, 2024), while Bolt requires in-office attendance for at least two days per week (Bolt CEO…, 2024). Conversely, Spotify allows remote work and just encourages teams to meet in the office occasionally to foster teamwork (Our employees…, 2024). The emphasis on teamwork and a sense of belonging are critical reasons organizations are encouraging employees to return to the office (Embracing change…, n.d). This concern is justified because excessive isolation can lead to feelings of inadequate support (Sardeshmukh et al., 2012; Mann et al., 2002). However, finding an appropriate balance is essential, as the saying “the more, the better” does not always hold true in context of communication (van Zoonen et al., 2021; Mann et al., 2002).

This study concentrates on finding suitable balance in frequency of teamwork considering various combinations of face-to-face and virtual teamwork (daily, several times a week, a few times a month or less, and not at all). Additionally, the study will address the topic of motivation, which has been underexplored in the context of remote work and was also not covered in Gajendran et al.’s (2024) meta-analysis. Companies noticed during the COVID-19 pandemic that especially motivation significantly declined, even in technology companies that previously had considerable experience with remote work (Colak & Saridogan, 2023). Efforts to combat this decline often involved increasing communication (Colak & Saridogan, 2023), which, as mentioned earlier, can produce mixed results. Here, a solution could be taking into account proactive motivation encompassing three aspects proposed by Parker et al. (2010): “energized to”, “reason to”, and “can do”. Assuring high level of proactive motivation supports both teamwork and broader motivational dynamics (Parker et al 2010) and has shown to contribute to lower level of conflicts among team members (Ontrup, Kluge, 2022).

This research aims to find out what frequency of face-to-face and virtual teamwork enhances (proactive) motivation among employees while preventing feelings of isolation and relationship strain.

Consequently, this research unveils three key areas. First, it examines the extent to which virtual teamwork can substitute for in-person teamwork, particularly from a motivational perspective. Second, it seeks to determine the optimal frequency of different types of teamwork (in-person and virtual) that can be conducted without diminishing employee motivation. Third, the study tries to find a balance between possible tensions in the relationships from too frequent communication and preventing feelings of isolation among team members.

Data was collected from the Estonian Salary Information Agency (ESIA) dataset, which encompasses a wide selection of different sectors and occupations across all regions of the country. In Autumn 2024, 6,670 respondents participated in the ESIA study. From these respondents, individuals who were employed at the time of the study were selected, specifically those who lived and worked in Estonia. Individuals who did not engage in teamwork, whether face-to-face or virtually, were excluded from the analysis. Hence, the final sample consisted of 4,482 participants.

To assess the general level of motivation, the statement “I am motivated to do my job well” was utilized. The approach by Parker et al. (2010) was employed, indicating that proactive motivation consists of three factors: • Energized to: Three statements from Warr et al. (2014), with an example statement: “I feel inspired when I think about teamwork.” • Reason to: Three statements from Gagné et al. (2015), with an example statement: “I put effort into my work with my team because what I do in my work is exciting.” • Can do: Six statements from Rigotti et al. (2008), with an example statement: “Whatever comes my way in my job, I can usually handle it.”

Isolation was measured with the item: “I felt that I am alone with my work-related worries” and relational strain with the item “I was bothered by strained relationships between co-workers.”

For statistical analysis, correlation analysis (using the Spearman coefficient) and Analysis of Variance (ANOVA) were employed, with a significance level set at 0.05.

The results of correlation analysis indicate that employees are more motivated to do their jobs when they have higher results in all proactive motivation factors: “reason to”, “energized to” and “can do”. Consequently, enjoyment of work tasks and teamwork itself and confidence in oneself are all supporting general motivation. Conversely, motivation is negatively affected when individuals feel isolated with work-related concerns, as well as when relationships among employees are strained.

The results of ANOVA revealed that it is not necessary for teams to be physically present in the same space every day to be motivated and show good levels of proactive motivation. In fact, spending too much time together can have its drawbacks, such as increasing strains in relationships which in turn decrease proactive motivation and motivation in general. Actually, to maintain motivation and keep the spark alive, it is sufficient for teams to meet a few times a week or month, or even less frequently. However, purely virtual teamwork cannot replace face-to-face interactions from motivational point of view and can also lead to feelings of isolation which in turn reduces (proactive)motivation.

These findings provide organizations with considerable flexibility in making decisions regarding remote work and in-office arrangements based on their preferences. Furthermore, this study advocates for employing versatile combinations of different work locations, as motivation and teamwork do not suffer from such flexibility.

Note: The reference list is provided in the attached file