Abstract
We report findings from a natural field experiment conducted at a university in which staff members order stationery for work-related purposes online, and the university bears the entire cost. We randomize staff members into a treatment and a control group. Only the former observes the cost information in the online ordering interface. We find that displaying the organization’s cost did not change the ordering frequency, nor the quantity of requested items, conditional on the items being ordered (the intensive margin), but did reduce the variety of items ordered (the extensive margin). Overall, the intervention led to a significant reduction in stationery consumption, resulting in a 27% decrease in quantities and substantial cost savings for the university. Thus, individuals at least partially internalize the external effects of their actions when the organization’s cost is made salient.