Toward An Understanding of the Economics of Apologies: Evidence from a Large-Scale Natural Field Experiment

A-Tier
Journal: Economic Journal
Year: 2022
Volume: 132
Issue: 641
Pages: 273-298

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use a theory of apologies to design a nationwide field experiment involving 1.5 million Uber ridesharing consumers who experienced late rides. Several insights emerge. First, apologies are not a panacea—the efficacy of an apology and whether it may backfire depend on how the apology is made. Second, across treatments, money speaks louder than words—the best form of apology is to include a coupon for a future trip. Third, in some cases sending an apology is worse than sending nothing at all, particularly for repeated apologies and apologies that promise to do better. For firms, caveat venditor should be the rule when considering apologies.

Technical Details

RePEc Handle
repec:oup:econjl:v:132:y:2022:i:641:p:273-298.
Journal Field
General
Author Count
4
Added to Database
2026-01-25