We study the idea of information design for inducing prosocial behavior in the context of electricity consumption. We consider a continuum of agents. Each agent has a different intrinsic motivation to reduce her power consumption. Each agent models the power consumption of the others via a distribution. Using this distribution, agents will anticipate their reputational benefit and choose a power consumption by trading off their own intrinsic motivation to do a prosocial action, the cost of this prosocial action and their reputation. Initially, the service provider can provide two types of quantized feedbacks of the power consumption. We study their advantages and disadvantages. For each feedback, we characterize the corresponding mean field equilibrium, using a fixed point equation. Besides computing the mean field equilibrium, we highlight the need for a systematic study of information design, by showing that revealing less information to the society can lead to more prosociality. In the last part of the paper, we introduce the notion of privacy and provide a new quantized feedback, more flexible than the previous ones, that respects agents' privacy concern but at the same time improves prosociality. The results of this study are also applicable to generic resource sharing problems.
We develop a theory of prosocial behavior that combines heterogeneity in individual altruism and greed with concerns for social reputation or self-respect. Rewards or punishments (whether material or image-related) create doubt about the true motive for which good deeds are performed and this "overjustification effect" can induce a partial or even net crowding out of prosocial behavior by extrinsic incentives. We also identify settings that are conducive to multiple social norms and those where disclosing one's generosity may backfire. Finally, we analyze the choice by public and private sponsors of incentive levels, their degree of confidentiality and the publicity given to agents' behavior. Sponsor competition is shown to potentially reduce social welfare. Fixing a game with uncertain payoffs, information design identifies the information structure and equilibrium that maximizes the payoff of an information designer. We show how this perspective unifies existing work, including that on communication in games (Myerson (1991)), Bayesian persuasion (Kamenica and Gentzkow (2011)) and some of our own recent work. Information design has a literal interpretation, under which there is a real information designer who can commit to the choice of the best information structure (from her perspective) for a set of participants in a game. We emphasize a metaphorical interpretation, under which the information design problem is used by the analyst to characterize play in the game under many different information structures.