|
on Experimental Economics |
|
Issue of 2020‒08‒17
forty-six papers chosen by |
| By: | Anna Lou Abatayo (Bocconi University, University of Hawaii at Manoa and University of Guelph); John Lynham (University of Hawaii at Manoa); Katerina Sherstyuk (University of Hawaii at Manoa) |
| Abstract: | We study how communication under differ popular media affects trust game play. Three communication media are considered: traditional face-to- face, Facebook groups, and anonymous online chat. We consider post-communication changes in player expectations and preferences, and further analyze the contents of group communications to understand the channels though which communication enhances sender and receiver behavior. For senders, social, emotional and game-relevant contents of communication all matter, significantly influencing both their expectations of fair return and preferences towards receivers. Receiver increased trustworthiness is mostly explained by their adherence to the social norm of sending back a fair share in return for the full amount received. Remarkably, these results do not qualitatively differ among the three communication media; while face-to-face had the largest volume of messages, all three media proved equally effective in enhancing trust and trustworthiness. |
| Keywords: | communication technology; laboratory experiments; trust games; contents analysis |
| JEL: | C72 C92 D83 |
| Date: | 2020–07 |
| URL: | https://d.repec.org/n?u=RePEc:hai:wpaper:202021&r=all |
| By: | Cécile Bourreau-Dubois; Myriam Doriat-Duban; Bruno Jeandidier; Jean Claude Ray |
| Abstract: | We study decision-making of judges in an experimental setting resembling real world judicial decision making. We gave to 312 future judges 48 vignettes built from real data related to divorce cases involving children. We compare two different subject pools: judges who were asked to set child support awards with a guideline and judges who were asked to set child support awards without any guideline. We found that the introduction of a guideline contributes to reduce the disparity between judges (i.e. the variance for like cases is lower when the subjects have the opportunity to use the guideline) but this effect is not systematic, an increase in heterogeneity being observed for some specific cases. |
| Keywords: | controlled experiment, field experiment, judicial sentencing, child support. |
| JEL: | K42 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2020-28&r=all |
| By: | Choi, S.; Goyal, G.; Moisan, F. |
| Abstract: | This paper presents a new platform for large scale networks experiments in continuous time. The versatility of the platform is illustrated through three experiments: a game of linking, a linking game with public goods, and a linking game with trading and intermediation. Group size ranges from 8 to 100 subjects. These experiments reveal that subjects create sparse networks that are almost always highly efficient. In some experiments the networks are centralized and unequal, while in others they are dispersed and equal. These network structures are in line with theoretical predictions, suggesting that continuous time asynchronous choice facilitates a good match between experimental outcomes and theory. The size of the group has powerful effects on individual investments in linking and effort, on network structure, and on the nature of payoff inequality. Researchers should therefore exercise caution in drawing inferences about behaviour in large scale networks based on data from small group experiments. |
| JEL: | C92 D83 D85 Z13 |
| Date: | 2020–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2063&r=all |
| By: | J. Andrew Harris; Catherine Kamindo; Peter van der Windt (Division of Social Science) |
| Abstract: | We examine the effects of national voter registration policies on voting patterns with a large-scale experimental study. Together with Kenya’s electoral commission, we designed an experiment in which 1,674 communities were randomized to a status quo or treatment group, receiving civic education on voter registration, SMS reminders about registration opportunities, and/or local registration visits by election commission staff. We find little evidence that civic education improves registration. Local registration visits improve voter registration, a relationship that increases in poorer communities. Moreover, local registration increased electoral competition and vote preference diversity in down-ballot contests in the 2017 Kenyan elections. Our results suggest that status quo voter registration policies constrain political participation and competition, and that inexpensive policy changes may attenuate the effects of such constraints. |
| Date: | 2020–01 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20200036&r=all |
| By: | Adrian Penalver; Nobuyuki Hanaki; Eizo Akiyama; Yukihiko Funaki |
| Abstract: | We experimentally investigate the effect of a central bank buying bonds for cash in a quantitative easing (QE) operation. In our experiment, the bonds are perfect substitutes for cash and have a constant fundamental value which is not affected by QE in the rational expectations equilibrium. We find that QE raises bond prices above those in the benchmark treatment without QE. Subjects in the benchmark treatment learned to trade the bonds at their fundamental value but those in treatments with QE became more convinced after repeated exposure to the same treatment that QE boosts bond prices. This suggests the possibility of a behavioural channel for the observed effects of actual QE operations on bond yields. |
| Date: | 2020–07 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1094&r=all |
| By: | Sebastian Fehrler; Baiba Renerte; Irenaeus Wolff |
| Abstract: | In many games of imperfect information, players can make Bayesian inferences about other players’ types based on the information that is contained in their own type. Several behavioral theories of belief-updating even start from the assumption that players project their own type onto others also when it is not rational. We investigate such inferences in a simple laboratory task, in which types are drawn from one out of two states of the world and participants have to guess the type of another participant. We nd lile evidence for irrational (over-)projection. Instead, between 50% and 70% of the participants in our experiment completely neglect the information contained in their own type and base their choices only on the prior probabilities. Using several experimental interventions, we show that this striking neglect of information is very robust. |
| Keywords: | Projection, Bayesian inference, biased belief-updating |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:twi:respas:0118&r=all |
| By: | Haaland, Ingar (University of Bergen and CESifo); Roth, Christopher (University of Warwick, CAGE Warwick, CESifo, CEPR); Wohlfart. Johannes (University of Copenhagen, CESifo, Danish Finance Institute) |
| Abstract: | We review methodological questions relevant for the design of information provision experiments. We first provide a literature review of major areas in which information provision experiments are applied. We then outline key measurement challenges and design recommendations that may be of help for practitioners planning to conduct an information experiment. We discuss the measurement of subjective beliefs, including the role of incentives and ways to reduce measurement error. We also discuss the design of the information intervention, as well as the measurement of belief updating. Moreover, we describe ways to mitigate potential experimenter demand effects and numerical anchoring arising from the information treatment. Finally, we discuss typical effect sizes in information experiments. |
| Keywords: | Experimental Design ; Beliefs ; Information ; Obfuscation JEL codes: C90 ; D83 ; D91 ; L82 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1275&r=all |
| By: | Hager, Anselm (University of Konstanz); Hensel, Lukas (University of Oxford); Hermle, Johannes (University of California, Berkeley); Roth, Christopher (University of Warwick, briq, CESifo, CAGE Warwick, CEPR) |
| Abstract: | Collective action is the result of the efforts of groups consisting of many individuals. This gives rise to strategic interactions : the decision of an individual to participate in collective action may depend on the efforts of both like-minded and opposing activists. This paper causally studies such strategic interactions in the context of left- and right-wing protests in Germany. In an experiment, we investigated whether randomly varied information on turnout of both like-minded and opposing movements impacts activists’ willingness to protest. In response to information about high turnout of their own group, left-wing activists increased their willingness to protest, consistent with theories of conditional cooperation. In contrast, right-wing activists decreased their willingness to protest, consistent with instrumental accounts and free-riding motives. For both groups, there was no significant reaction to information about turnout of the opposing movement. The results highlight substantial heterogeneity in strategic interactions and motives across the political spectrum |
| Keywords: | Political rallies ; field experiment ; strategic behavior ; beliefs |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1281&r=all |
| By: | Boris Ginzburg; José-Alberto Guerra; Warn N. Lekfuangfu |
| Abstract: | A committee chooses whether to approve a proposal that some members may consider ethical. Members who vote for the proposal receive expressive utility, and all pay a cost if the proposal is accepted. Committee members have different depths of reasoning. The model predicts that features that reduce the probability of being pivotal - namely, larger committee size, or a more restrictive voting rule - raise the share of votes for the proposal. A laboratory experiment with a charitable donation framing supports these results. Our structural estimation recovers the distributions of altruistic and expressive preferences, and of depth of reasoning, across individuals. |
| Keywords: | expressive voting, committees, pivotality, laboratory experiment, level-k, structural estimation |
| JEL: | C57 C72 C92 D71 D91 |
| Date: | 2020–07–13 |
| URL: | https://d.repec.org/n?u=RePEc:col:000089:018250&r=all |
| By: | Fenella Carpena (Oslo Business School, Oslo Metropolitan University) |
| Abstract: | Health education programs for the general public have long been a popular and widely used policy tool to prevent disease and improve well-being. While a large literature has examined the effects of such programs on health outcomes, the effective modes of delivery of health education---particularly in developing countries---have received much less attention. This short paper considers two practicable yet largely unexplored avenues for implementing health education interventions: (1) using videos---a low-cost and easily scalable delivery channel; and (2) providing participants with a pay-for-performance cash reward for post-program health literacy. Employing a randomized field experiment in India, I find that video-based health education successfully increased health knowledge. Importantly, these gains persist almost one year later and correspond with more nutritious diets. At the same time, pay-for-performance incentives generally do not appear to boost the efficacy of health education. These insights contribute to our knowledge of what works for health education in low-income settings, so that better health education initiatives can be crafted for more meaningful impact. |
| Date: | 2020–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:oml:wpaper:202001&r=all |
| By: | Joaquin Artes; Jennifer Graves; Meryl Motika (Division of Social Science) |
| Abstract: | When incentivizing a worker with performance pay, does the effectiveness of the pay type used vary by the type of task being completed? To answer this question, we run an experiment to test the task-specific productivity effects of various types of performance-based payments, each intended to incentivize productivity. The incentives we use are competition, high-stakes pay, time pressure and piece rate pay, each evaluated against a non-performance-based flat rate payment. Each of these incentives are applied in situations with participants completing three types of tasks: a routine task, a purely creative task and a creative problem-solving task. By testing these various tasks and pressures in the same experimental design, we are able to make comparisons across task types that have not been possible in previous studies. Our results show that productivity indeed does differ across task type and incentive combinations. We find that, for routine tasks, all incentivizing payment schemes improve productivity relative to flat rate payment. In contrast, for both the purely creative and the creative problem-solving tasks, none of the payment types of piece rate, timed goals nor high stakes pay impact productivity relative to a flat rate payment, with the high pay incentive even decreasing performance on the problemsolving task. We find competition to be the one incentive-based pay scheme that boosts productivity. Participants performed as well or better under competition across all task types, with a notable increase in their performance on pure creative tasks. |
| Date: | 2019–10 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190028&r=all |
| By: | Erin T. Bronchetti; Judd B. Kessler; Ellen B. Magenheim; Dmitry Taubinsky; Eric Zwick |
| Abstract: | A large and growing literature shows that attention-increasing interventions, such as reminders and planning prompts, can promote important behaviors. This paper develops a method to investigate whether people value attention-increasing tools rationally. We characterize how the demand for attention improvements must vary with the pecuniary incentive to be attentive and develop quantitative tests of rational inattention that we deploy in two experiments. The first is an experiment with an online education platform run in the field (n=1,373), in which we randomize incentives to complete course modules and incentives to make plans to complete the modules. The second is an online survey-completion experiment (n=944), in which we randomize incentives to complete a survey three weeks later and the price of reminders to complete the survey. In both experiments, as incentives to complete a task increase, demand for attention-improving technologies also increases. However, our tests suggest that the increase in demand for attention improvements is too small relative to the null of full rationality, indicating that people underuse attention-increasing tools. In our second experiment, we estimate that individuals undervalue the benefits of reminders by 59%. |
| JEL: | C91 C93 D91 |
| Date: | 2020–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:27443&r=all |
| By: | Alex Bryson (Department of Quantitative Social Science, Institute of Education); Peter Dolton (Department of Economics, University of Sussex); J. James Reade (Department of Economics, University of Reading); Dominik Schreyer (Wissenschaftliche Hochschule für Unternehmensführung (WHU)); Carl Singleton (Department of Economics, University of Reading) |
| Abstract: | The Covid-19 pandemic has induced worldwide natural experiments on the effects of crowds. We exploit one of these experiments currently taking place over several countries in almost identical settings: professional football matches played behind closed doors. We find large and statistically significant effects on the number of yellow cards issued by referees. Without a crowd, fewer cards were awarded to the away teams, reducing home advantage. These results have implications for the influence of social pressure and crowds on the neutrality of refereeing decisions. |
| Keywords: | Attendance, Coronavirus, Covid-19, Home advantage, Natural Experiments, Referee Bias, Social Pressure |
| JEL: | C90 D91 L83 Z20 |
| Date: | 2020–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2020-18&r=all |
| By: | Alex Bryson (University College London); Peter Dolton (University Of Sussex); J James Reade (University of Reading); Dominik Schreyer (Otto Beisheim School of Management, Düsseldorf, Germany); Carl Singleton (University of Reading) |
| Abstract: | The Covid-19 pandemic has induced worldwide natural experiments on the effects of crowds. We exploit one of these experiments currently taking place over several countries in almost identical settings: professional football matches played behind closed doors. We find large and statistically significant effects on the number of yellow cards issued by referees. Without a crowd, fewer cards were awarded to the away teams, reducing home advantage. These results have implications for the influence of social pressure and crowds on the neutrality of refereeing decisions. |
| Keywords: | Attendance, Coronavirus, Covid-19, Home Advantage, Natural Experiments, Referee Bias, Social Pressure |
| JEL: | B41 C01 C12 C25 C52 K42 |
| Date: | 2020–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:qss:dqsswp:2004&r=all |
| By: | Subhasish M. Chowdhury; Patricia Esteve-González; Anwesha Mukherjee |
| Abstract: | The heterogeneous abilities of the players in various competitive contexts often lead to undesirable outcomes such as low effort provision, lack of diversity, and inequality. A range of policies are implemented to mitigate such issues by enforcing competitive balance, i.e., leveling the playing field. While a number of such policies are aimed at increasing competition, affirmative action (AA) policies are historically practiced in an ethical response to historical discrimination against particular social groups among winners. This survey summarizes the rapidly growing literature of contest theory on AA and other policies that level the playing field. Using a general theoretical structure, we outline research on player and contest designer behavior under a multitude of policy mechanisms; and discuss the theoretical, experimental, and empirical results in relation to some of the common debates surrounding AA. |
| Keywords: | Survey; Affirmative Action; Contest; Heterogeneity |
| JEL: | A31 C72 D74 D82 |
| Date: | 2020–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:915&r=all |
| By: | Marta Ballatore (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique); Lise Arena (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique); Agnès Festré (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article aims at making an updated typology of recent experimental studies in the IS literature on the period 1999-2019. Based on a full-text search within the Association for Information Systems (AIS) "basket" of eight top IS journals (EJIS, ISR, JAIS, ISJ, JIT, JMIS, JSIS and MISQ), this research gathered 392 articles and highlights the use of 4 different types of experiments in IS, mainly: laboratory experiments , field experiments, online experiments (scenario simulation game-based; brainstorming-based.. .) and natural experiments. Each category is discussed through the perspective of its degree of control, and technological realism. Results show the significant predominance of laboratory experiments over field and natural experiments on the period. This, in turn, stresses the preferred tendency followed by IS scholars to perceive experimental methods as a way to control the source of variations of variables under study. In addition, this paper provides a better understanding of the context of use of a specific experimental method. Overall, it is shown that laboratory experiments (including scenario-based lab experiments) are mainly used, in a deterministic manner, to assess or test the impact of an IS on human decision-making or behaviour. By contrast, artificial simulations experiments are more appropriate to study emergent phenomena and to make predictions, often providing key insights about quality and effectiveness of IS. ⇤ The authors are grateful to anonymous referees of the scientific committee of the AIM 2020 for their insights comments and suggestions. |
| Keywords: | Methodology,IS,Meta-research,Experimental method,Behavioural Science,Experimental Economics |
| Date: | 2020–06–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-02866756&r=all |
| By: | Ennio Bilancini; Leonardo Boncinelli; Lorenzo Spadoni |
| Abstract: | We study the impact of the mode of cognition on risk taking. In an online experiment we ask participants to make a simple decision involving risk. In the control group no manipulation is made, while in the treatment group we exogenously manipulate the mode of cognition by asking subjects to write down a text that motivates their risky choice before any decision is actually made. Such motivation treatment is meant to induce more reflection upon the decision to be made. Our results show an effect of the motivation treatment on risk taking, suggesting that higher reflection makes subjects more prone to risk taking. The effect is stronger if we consider only subjects who imperfectly understand the probability distribution implied by the simple choice task. Based on our experimental findings, we suggest that reflection and comprehension might be substitutes when individuals make decisions involving risk. |
| Keywords: | dual process; risk taking; motivation; deliberation; intuition; bomb risk elicitation task |
| JEL: | D01 D81 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:lui:cesare:2001&r=all |
| By: | Spencer Bastani (Linnaeus University); Daniel Waldenström (PSE - Paris School of Economics, WIL - World Inequality Lab) |
| Abstract: | We study how attitudes to inheritance taxation are influenced by information about the role of inherited wealth in society. Using a randomized experiment in a register-linked Swedish survey, we find that informing individuals about the large aggregate importance of inherited wealth and its link to inequality of op- portunity significantly increases the support for inheritance taxation. The effect is almost uniform across socio-economic groups and survives a battery of robust- ness tests. Changes in the perceived economic importance of inherited wealth and altered views on whether luck matters most for economic success appear to be the main driving factors behind the treatment effect. Our findings suggest that the low salience of inherited wealth could be one explanation behind the relatively marginalized role of inheritance taxation in developed economies. |
| Keywords: | Wealth,wealth inequality,Taxation,Inheritance,Capital taxation,Tax attitudes,Equality of opportunity,Randomized experiment |
| Date: | 2019 |
| URL: | https://d.repec.org/n?u=RePEc:hal:wpaper:hal-02877003&r=all |
| By: | Sanjeev Goyal; Penelope Hernandez; Guillem Martinez-Canovas; Frederic Moisan; Manuel Munoz-Herrera; Angel Sanchez (Division of Social Science) |
| Abstract: | We study a setting where individuals prefer to coordinate with others but they di er on their preferred action. Our interest is understanding the role of linking in shaping behavior. So we consider the situation in which interactions are exogenous and a situation where individuals choose links that determine the interactions. Theory is permissive in both settings: conformism (on either of the actions) and diversity (with di erent groups choosing their preferred actions) are both sustainable in equilibrium. Our experiments reveal that, in an exogenous complete network, subjects choose to conform to the majority's preferred action. By contrast, when linking is free and endogenous, subjects form dense networks (biased in favour of linking within same preferences type) but choose diverse actions. The convergence to diverse actions is faster under endogenous linking as compared to the convergence to conformity on the majority's preferred action under the exogenous complete network. Thus, our experiment suggests that individuals use links selectively to swiftly solve the coordination problem. |
| Date: | 2019–03 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190025&r=all |
| By: | Maximilian Andres (University of Potsdam); Lisa Bruttel (University of Potsdam); Jana Friedrichsen (HU Berlin, WZB Berlin Social Science Center, DIW Berlin) |
| Abstract: | Numerous studies investigate which sanctioning institutions prevent cartel formation but little is known as to how these sanctions work. We contribute to understanding the inner workings of cartels by studying experimentally the effect of sanctioning institutions on firms’ communication. Using machine learning to organize the chat communication into topics, we find that firms are significantly less likely to communicate explicitly about price fixing when sanctioning institutions are present. At the same time, average prices are lower when communication is less explicit. A mediation analysis suggests that sanctions are effective in hindering cartel formation not only because they introduce a risk of being fined but also by reducing the prevalence of explicit price communication. |
| Keywords: | cartel, collusion, communication, machine learning, experiment |
| JEL: | C92 D43 L41 |
| Date: | 2020–07 |
| URL: | https://d.repec.org/n?u=RePEc:pot:cepadp:19&r=all |
| By: | Barron, Kai; Gravert, Christina |
| Abstract: | Confidence in one's own abilities is often seen as an important determinant of being successful. Empirical evidence about how such beliefs about one's own abilities causally influence choices is, however, sparse. In this paper, we use a stylized laboratory experiment to investigate the causal effect of an increase in confidence on two important choices made by workers in the labor market: (i) choosing between jobs with a payment scheme that depends heavily on ability [high earnings risk] and those that pay a fixed wage [low earnings risk], and (ii) the subsequent choice of how much effort to exert within the job. We find that an exogenous increase in confidence leads to an increase in subjects' propensity to choose payment schemes that depend heavily on ability. This is detrimental for low ability workers due to high baseline levels of confidence. |
| Keywords: | overconfidence,experiment,beliefs,real-effort,career choices |
| JEL: | C91 D03 M50 J24 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wzbeoc:spii2018301r2&r=all |
| By: | Ashesh Rambachan; Jonathan Roth |
| Abstract: | Social scientists are often interested in estimating causal effects in settings where all units in the population are observed (e.g. all 50 US states). Design-based approaches, which view the treatment as the random object of interest, may be more appealing than standard sampling-based approaches in such contexts. This paper develops a design-based theory of uncertainty suitable for quasi-experimental settings, in which the researcher estimates the treatment effect as if treatment was randomly assigned, but in reality treatment probabilities may depend in unknown ways on the potential outcomes. We first study the properties of the simple difference-in-means (SDIM) estimator. The SDIM is unbiased for a finite-population design-based analog to the average treatment effect on the treated (ATT) if treatment probabilities are uncorrelated with the potential outcomes in a finite population sense. We further derive expressions for the variance of the SDIM estimator and a central limit theorem under sequences of finite populations with growing sample size. We then show how our results can be applied to analyze the distribution and estimand of difference-in-differences (DiD) and two-stage least squares (2SLS) from a design-based perspective when treatment is not completely randomly assigned. |
| Date: | 2020–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2008.00602&r=all |
| By: | Andreas Gerster; Mark A. Andor; Lorenz Götte |
| Abstract: | Novel information technologies hold the promise to improve decision making. In the context of smart metering, we investigate the impact of providing households with appliance-level electricity feedback. In a randomized controlled trial, we find that the provision of appliance-level feedback creates a conservation effect of an additional 5% relative to a group receiving standard (aggregate) feedback. These conservation effects are largely driven by reductions in electricity use of 10% to 15% during peak hours. Consumers with appliance-level feedback hold more accurate beliefs about the energy consumption of different appliances, consistent with the mechanism in our accompanying model. Our result suggests that conservation effects from a smart-meter rollout will be much larger if appliance-level feedback can be provided. Based on a sufficient statistics approach, we estimate that appliance-level feedback could raise consumer surplus by about 570 to 600 million Euro per annum for German households. |
| Keywords: | Randomized controlled trial, disaggregation, consumption feedback, energy conservation |
| JEL: | D12 D83 L94 Q41 |
| Date: | 2020–06 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2020_182&r=all |
| By: | Enrico Cantoni; Vincent Pons |
| Abstract: | We test whether politicians can use direct contact to reconnect with citizens, increase turnout, and win votes. During the 2014 Italian municipal elections, we randomly assigned 26,000 voters to receive visits from city council candidates, canvassers supporting the candidates' list, or to a control group. While canvassers’ visits increased turnout by 1.8 percentage points, candidates’ had no impact on participation. Candidates increased their own vote share in the precincts they canvassed, but only at the expense of other candidates on the list. This suggests that their failure to mobilize nonvoters resulted from focusing on securing the preferences of active voters. |
| JEL: | C93 D72 |
| Date: | 2020–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:27433&r=all |
| By: | Manuel Munoz-Herrera; Ernesto Reuben (Division of Social Science) |
| Abstract: | In this paper, we study the effects of business culture on market effciency. We exogenously vary the type of business culture between business-is-business cultures, which consist on impersonal relationships where fnancial matters are paramount, and business-is-family cultures, which comprise of cohesive personal relationships where fnancial matters and personal attachments are intertwined. We use a laboratory experiment to assess the effect of business cultures in environments with different degrees of contract enforceability and competition. Our main results indicate that business-is-family cultures are more effective when contracts are unverifiable because they help market participants overcome problems of trust. On the other hand, we find that business-is-business cultures are more e ective in competitive settings because they facilitate the severance of ties with unproductive partners. |
| Date: | 2019–06 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190027&r=all |
| By: | Giuseppe Attanasi (Université Côte d'Azur, France; GREDEG CNRS); Michela Chessa (Université Côte d'Azur, France; GREDEG CNRS); Carlo Ciucani (LUISS University, Rome, Italy); Sara Gil Gallen (Università degli studi di Bari "Aldo Moro", Italy) |
| Abstract: | We define GrI-creativity as the specific creative cognition process resulting in green innovation, i.e., directed toward the generation of green rather than non-green products. In this work, we developed an operational way to investigate the GrI-creativity process and its determinants through a lab-in-the-field experiment with primary school children aged from 7 to 11 years old. Subjects performed a common drawing task, but with different means: only a black marker, any color among twelve (including black), or three among the same twelve color set. Our findings show that (i) freedom of choice in the used tools is boosting creativity, (ii) limited resources do not boost creativity, but they are not detrimental either. According to our results, GrI-creativity can be enhanced by providing fewer resources, but ensuring that individuals are given some discretion when it comes to choosing which of them to use. Therefore, we combine our experimental method with insights from social psychology. We provide evidence of a highly significant positive effect on creativity of three personal traits of the subjects, namely: a high score at the Cognitive Reflection Test, self-perception of creativity and the practice of sport in daily life. All these results are in line with the existing literature investigating the determinants of creativity. More surprisingly, we do not find evidence of a role of the risk preferences. |
| Keywords: | Creativity, Green Innovation, Experimental Economics, Social Psychology |
| JEL: | C91 D91 O31 Q50 |
| Date: | 2020–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2020-34&r=all |
| By: | Kenneth Gillingham; Bryan Bollinger |
| Abstract: | A growing literature points to the effectiveness of leveraging social interactions and nudges to spur adoption of pro-social behaviors. This study investigates a large-scale behavioral intervention designed to actively leverage social learning and peer interactions to encourage adoption of residential solar photovoltaic systems. Municipalities choose a solar installer offering group pricing, and undertake an informational campaign driven by volunteer ambassadors. We find a causal treatment effect of 37 installations per municipality from the campaigns, and no evidence of harvesting or persistence. The intervention also lowers installation prices. Randomized controlled trials based on the intervention show that selection into the program is important while group pricing is not. Our results suggest that the program provided economies of scale and lowered consumer acquisition costs, leading to low-cost emissions reductions. |
| Keywords: | non-price interventions, social learning, renewable energy, solar photovoltaic panels, technology adoption, natural experiment |
| JEL: | D03 L22 Q42 Q48 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_8434&r=all |
| By: | Barron, Kai; Harmgart, Heike; Huck, Steffen; Schneider, Sebastian; Sutter, Matthias |
| Abstract: | We measure the prevalence of discrimination between Jordanian host and Syrian refugee children attending school in Jordan. Using a simple sharing experiment, we find only little discrimination. Among the Jordanian children, however, we see that those who descended from Palestinian refugees do not discriminate at all, suggesting that a family history of refugee status can generate solidarity with new refugees. We also find that parents' narratives about the refugee crisis are correlated with the degree of discrimination, suggesting that discriminatory preferences are being transmitted through parental attitudes. |
| Keywords: | discrimination,refugees,children,experiment,integration |
| JEL: | C91 D90 J15 C93 J13 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wzbeoc:spii2020304&r=all |
| By: | Ernesto Reuben; Francesco Fallucchi; Daniele Nosenzo (Division of Social Science) |
| Abstract: | We validate experimentally a new survey item to measure the preference for competition. The item, which measures participants’ agreement with the statement “Competition brings the best out of me”, predicts individuals’ willingness to compete in the laboratory after controlling for their ability, beliefs, and risk attitude (Niederle and Vesterlund, 2007). We further validate the explanatory power of our survey item outside of the laboratory, by comparing responses across two samples with predicted differences in their preference for competition: professional athletes and non-athletes. As predicted, we find that athletes score higher on the item than non-athletes. |
| Date: | 2019–12 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190034&r=all |
| By: | Daniel Parra; Manuel Munoz-Herrera; Luis Palacio (Division of Social Science) |
| Abstract: | We use a laboratory experiment to study the impact of transparency on reducing corruption in contexts where embezzlement and bribery can co-occur. These contexts are closely related to grand corruption settings, where different types of corruption occur and allow people in power to take advantage of their position. Transparency is expected to have a positive effect on reducing corruption. However, our results show that transparency decreases embezzlement by roughly ten percentage points, while it has no significant effect on bribery. The observed differential impact of transparency could be attributed to strategic lying by the resource manager, who acts as if low public investment rates were a consequence of bad luck (low budget) instead of misappropriation. This suggests that the impact of transparency cannot be generalized to all types of corruption when different types co-exist. |
| Date: | 2019–05 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190026&r=all |
| By: | Douadia Bougherara (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margaux Lapierre (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexandre Sauquet (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Nearly all Agri-Environmental Schemes (AES) offer stable annual payments over theduration of the contract. Yet AES are often intended to be a transition tool, designed totrigger changes in farming practices rather than to support them indefinitely. A decreasingsequence of payments thus appears particularly attractive as a reward structure for AES.The standard discounted utility model supports this notion by predicting that individualsshould prefer a decreasing sequence of payments if the total sum of outcomes is con-stant. Nevertheless, the literature shows that numerous mechanisms, such as increasingproductivity, anticipatory pleasure, and loss aversion, can, by contrast, incline individualsto favor an increasing sequence of payments. To understand the preferences of farmersfor different payment sequences, we propose a review of the mechanisms highlighted bythe literature in psychology and economics. We then test farmers' preferences for stable,increasing or decreasing payments through a choice experiment (CE) survey. In this sur-vey, farmers are offered hypothetical contracts rewarding the planting of cover crops. Toreduce hypothetical bias, the choice cards were designed following repeated interactionswith local stakeholders. One hundred twenty-three French farmers, about 15% of thosecontacted, responded to the survey. Overall, farmers do not present a clear willingnessto depart from the usual stable payments. Nevertheless, 17% declare a preference for in-creasing sequences of payment. Moreover, we find a significant rejection of decreasingpayments by farmers with a lower discount rate or farmers more willing to take risks thanthe median farmer, contradicting the discounted utility model |
| Keywords: | Choice experiment,Cover crops,Farming practices,Sequences of outcomes,Agri-Environmental Schemes,Discounted utility |
| Date: | 2020–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:wpceem:hal-02892858&r=all |
| By: | Andrzej Baranski; Rebecca Morton (Division of Social Science) |
| Abstract: | We collected and analyzed the data sets of all majoritarian Baron and Ferejohn (1989 Am. Pol. Sci. Rev.) experiments through 2018. By exploiting the variation of experimental parameters such as group size and discount factor we are able to test whether or not the theoretical point predictions and comparative statics hold and find virtually no support for the theory. Novel findings are reported about the e ect of group size and discounting on distribution of the surplus, the proposer's share, agreement delay, and voting behavior. We also report on o -equilibrium behavior (after subjects fail to agree) and identify strong history-dependent behavior in the form of punishment and loyalty to previous proposers. |
| Date: | 2020–01 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20200037&r=all |
| By: | Christopher Erwin (NZ Work Research Institute, Faculty of Business, Economics and Law at AUT University); Melissa Binder (Department of Economics, University of New Mexico); Cynthia Miller (Manpower Demonstration Research Corporation); Kate Krause (Department of Economics, University of New Mexico) |
| Abstract: | Income gaps in college enrollment, persistence, and graduation raise concerns for those interested in equal opportunity in higher education. We present findings from a randomly assigned scholarship for low-income students at a medium-sized public four-year university. The program focused solely on the first four semesters of enrollment and tied aid disbursements to modest academic benchmarks and enhanced academic advising. Meaningful decreases in time to degree appear to be driven by students with the lowest academic preparation and family income. Treated students took out approximately 20 percent less in student loans during the duration of the program. Participants also indicated high satisfaction with the program’s model of enhanced academic advising. |
| Keywords: | enhanced advising, merit-based financial aid, income gaps, college graduation |
| Date: | 2020–07 |
| URL: | https://d.repec.org/n?u=RePEc:aut:wpaper:202006&r=all |
| By: | Huyen, Nguyen Thanh Thanh |
| Abstract: | On Randomized Controlled Trials in Economics |
| Date: | 2020–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:fqem4&r=all |
| By: | Lotti, Lorenzo |
| Abstract: | This paper investigates the impact of prolonged social distancing on generosity by analyzing the responses of 1255 US citizens to dictator games spread out over eight weeks of the early stages of the COVID-19 pandemic. Despite the isolation and the negative effects on employment and household �nances, individuals became more generous over this time period. There is signi�cant heterogeneity in the effect of additional regressors, such as perceived contagion risk, on the likelihood and amount donated to strangers, family members, or the government. At the same time, signi�cant effects of the position of games with respect to the others highlight the signi�cant role of framing on generous behaviours. |
| Keywords: | Generosity, Dictator Game, Social Preferences, Framing, Altruism, Covid-19 |
| JEL: | C71 D63 D64 D71 D91 I14 |
| Date: | 2020–08–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:102144&r=all |
| By: | Andrzej Baranski; Caleb A. Cox (Division of Social Science) |
| Abstract: | We experimentally investigate the effect on efficiency of pre-bargaining communication in a multilateral majoritarian bargaining game with joint production under two conditions: observable and unobservable productive investments. In both conditions, communication mainly fosters fair sharing and is rarely used by proposers to pit voters against each other. A virtuous cycle of proportional surplus sharing arises in treatments with observable investments regardless of whether communication is possible leading to high efficiency gains over time. In the absence of investment observability, communication is widely used by subjects to truthfully report their investments, which coupled with calls for equitable sharing, allows for substantial efficiency gains. These results contrast sharply with previous findings on bargaining over an exogenous fund where communication leads to highly unequal outcomes, competitive messages, and virtually no calls for fair sharing. |
| Date: | 2019–11 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190032&r=all |
| By: | Heap, Shaun P. Hargreaves; Matakos, Konstantinos; Weber, Nina Sophie |
| Abstract: | People frequently behave non-selfishly in situations where they can reduce their own payoff to help others. It is typically assumed that such pro-social behaviour arises because people are motivated by a social preference. An alternative explanation is that they follow a social norm. We test with two survey experiments (N=2,408) which of these two explanations can better explain decisions people make in a simple distribution game under three different elicitation mechanisms. Unlike previous studies, we elicit preferences and perceived social norms directly for each subject. We find that i) norm-following better explains people’s distributive choices compared to social preferences and ii) lack of confidence in one’s social preference –itself explained by weaker social identification— predicts norm-following. Our findings imply that the Pareto criterion has weaker (than previously thought) foundations for welfare evaluations, but this effect may be attenuated in societies with stronger social identification. Perhaps unexpectedly, but unsurprisingly given i) above, we find that different mechanisms for eliciting social preferences have no effect on distribution decisions. |
| Date: | 2020–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:g4c2m&r=all |
| By: | Timmons, Shane; McElvaney, Terence; Lunn, Pete |
| Date: | 2019 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp641&r=all |
| By: | Barrett, Chris; Nourani, Vesall; Patacchini, Eleonora; Walker, Thomas |
| Abstract: | Inter-household transfers play a central role in village economies. Whether understood as informal insurance, credit, or social taxation, the dominant conceptual models used to explain transfers rest on a foundation of self-interested dynamic behavior. Using experimental data from households in rural Ghana, where we randomized private and publicly observable cash payouts repeated every other month for a year, we reject two core predictions of the dominant models. We then add impure altruism and social taxation to a model of limited commitment informal insurance networks. The data support this new model's predictions, including that unobservable income shocks may facilitate altruistic giving that better targets less-well-off individuals within one's network, and that too large a network can overwhelm even an altruistic agent, inducing her to cease giving. |
| Date: | 2019–11 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:14148&r=all |
| By: | Janet Hua Jiang |
| Abstract: | This note discusses insights from historical launches of new payment methods and related laboratory experiments on the potential adoption and use of a central bank digital currency in the Canadian context. |
| Keywords: | Central bank research; Digital currencies and fintech |
| JEL: | C9 E4 E5 E58 |
| Date: | 2020–06 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:20-12&r=all |
| By: | Milan Scasny (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic; Environmental Centre, Charles University, Czech Republic); Lydia Chikumbi (School of Economics, University of Cape Town, South Africa); Edwin Muchapondwa (School of Economics, University of Cape Town, South Africa); Djiby Thiam (School of Economics, University of Cape Town, South Africa) |
| Abstract: | Recently, the South African wine industry launched the world's first ‘no sulphite added’ wine made from indigenous Rooibos & Honey bush toasted wood chips. This wood chip contains antioxidants properties known to protect the wine from oxidation. On the other hand, SO2, as a preservative, is often perceived by wine consumers as causing headaches and migraine. Differentiated wines based on their SO2 content may be a profitable marketing avenue for the struggling industry. We interviewed more than 600 wine consumers to investigate perceptions on wine preservatives and to elicit willingness to pay for the innovative alternative based on Rooibos & Honey bush wood chips. Alongside the wine preservatives, we also examine consumers’ preferences for organic wine attribute and wine quality measured by 100-points quality score, and the cost. Based on the results from the mixed logit model, we find that consumers are willing to pay additionally R56.48(€3.53)per bottle of wine with natural Rooibos & Honey bush wood chips, while they are ready to pay R19.52(€1.22) more for organic wine and R1.60(€0.10) for each point on quality score. Consumer preferences are not statistically different between red and white wine but differ considerably across consumers, in particular, those who believe SO2 in wine cause headaches are willing to pay for replacing sulphur-based preservatives by a natural one at least three times more. Marketing implications are offered for the wine industry. Despite being the best available, existing data is still imperfect, and we therefore call for better data in the form of MNCs’ unconsolidated, public country-by-country reporting data. |
| Keywords: | wine preservatives; willingness to pay; discrete choice experiment |
| JEL: | O31 Q10 P46 |
| Date: | 2020–08 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2020_23&r=all |
| By: | Anais Lamour (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We use primary data from a choice experiment carried out with 207 coffee farmers in Costa Rica, in order to study their willingness to adopt various agroforestry systems under various types of support. We test four adaptation strategies that are based on resistant coffee varieties introduction, timber tree species production and/or shade tree density increase. Revealed preferences suggest that most of the respondents do value the introduction of resistant varieties. They are willing to plant twice the number of trees in their plantations when these are combined with resistant varieties. Conversely, all agroforestry systems requiring timber trees to be planted are chosen significantly less often and on average, their adoption would require a compensation scheme. We moreover find that a large majority of respondents is very responsive to non-monetary rewards, namely a subsidized credit, a free trial of resistant coffee seedlings or technical assistance. We conclude that each of these incentivescould be used as an incentive to induce land use changes |
| Keywords: | Payment for Environmental Services,Non-monetary Incentives,Climate change,Choice Experiment,Coffee,Costa Rica |
| Date: | 2020–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:wpceem:hal-02892085&r=all |
| By: | Frijters, Paul; Islam, Asad; Lalji, Chitwan; Pakrashi, Debayan |
| Abstract: | We use randomized roommate assignment in dormitories in a college in Kolkata in India to examine peer effects in weight gains among roommates. We use administrative data on weight, height, and test scores of students at the time of college admission and then survey these students at the end of their first and second years in college. We do not find any significant roommate specific peer effect in weight gain. Our results rather suggest that an obese roommate reduces the probability that the other roommates become obese in subsequent years. We examine potential mechanism using survey data on students' eating habits, smoking, exercise, and sleeping patterns. We find that obese roommates sleep longer, which in turn improves the sleep pattern of others, which might explain the weak negative effect of obese roommates on the weight of others in the same room. |
| Keywords: | health outcomes; obesity; peer effects; random dormitory assignment |
| JEL: | D90 |
| Date: | 2019–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:104117&r=all |
| By: | Ernesto Reuben; Paola Sapienza; Luigi Zingales (Division of Social Science) |
| Abstract: | We study whether and why taste for competition (as measured by Niederle and Vesterlund, 2007) affects MBA salaries and whether this effect can explain the wage gender gap. At graduation, MBAs with higher taste for competition earn $15K (9.3%) more. Over time this effect is mitigated by overconfidence. Seven years after graduation, competitive MBAs with a low degree of overconfidence earn 26% more, while those who are highly overconfident earn 19% less. Taste for competition explains 10% of the gender gap at graduation and none seven years later. |
| Date: | 2019–11 |
| URL: | https://d.repec.org/n?u=RePEc:nad:wpaper:20190031&r=all |
| By: | Thomas Buser (University of Amsterdam); Muriel Niederle (Stanford University); Hessel Oosterbeek (University of Amsterdam) |
| Abstract: | We assess the predictive power of two measures of competitiveness for education and labor market outcomes using a large, representative survey panel. The first is incentivized and is an online adaptation of the laboratory-based Niederle-Vesterlund measure. The second is an unincentivized survey question eliciting general competitiveness on an 11-point scale. Both measures are strong and consistent predictors of income, occupation, completed level of education and field of study. The predictive power of the new unincentivized measure for these outcomes is robust to controlling for other traits, including risk attitudes, confidence and the Big Five personality traits. For most outcomes, the predictive power of competitiveness exceeds that of the other traits. Gender differences in competitiveness can explain 5-10 percent of the observed gender differences in education and labor market outcomes. |
| Keywords: | competitiveness, career decisions, validated survey measures |
| JEL: | C9 I20 J24 J16 |
| Date: | 2020–08–11 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20200048&r=all |
| By: | Aymeric Bellon; J. Anthony Cookson; Erik P. Gilje; Rawley Z. Heimer |
| Abstract: | We examine how wealth windfalls affect self-employment decisions using data on cash payments from claims on Texas shale drilling to people throughout the United States. Individuals who receive large wealth shocks (greater than $50,000) have 51% higher self-employment rates. The increase in self-employment rates is driven by individuals who lengthen existing self-employment spells, and not by individuals who leave regular employment for self-employment. Moreover, the effect of wealth reverts for individuals whose payments run out. Rather than alleviating a financial constraint, our evidence suggests that unrestricted cash windfalls affect self-employment decisions primarily through self-employment’s non-pecuniary benefits. |
| JEL: | G02 L26 |
| Date: | 2020–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:27452&r=all |