nep-exp New Economics Papers
on Experimental Economics
Issue of 2021‒11‒01
twenty papers chosen by

  1. The double dividend of social information in charitable giving: Evidence from a framed field experiment By Feine, Gregor; Groh, Elke D.; von Loessl, Victor; Wetzel, Heike
  2. Eliciting Individual Discount Rates in Thailand: A Tale of Two Cities By Nuttaporn Rochanahastin; Shinawat Horayangkura
  3. Making Up for Harming Others — An Experiment on Voluntary Compensation Behavior By Stehr, Frauke; Werner, Peter
  4. Competition Among Public Good Providers for Donor Rewards By Natalie Struwe; James M. Walker; Esther Blanco
  5. The Dark Side of Monetary Bonuses: Theory and Experimental Evidence By Victor Gonzalez-Jimenez; Patricio S. Dalton; Charles N. Noussair
  6. A (Dynamic) Investigation of Stereotypes, Belief-Updating, and Behavior By Katherine B. Coffman; Paola Ugalde Araya; Basit Zafar
  7. Does Test-Based Teacher Recruitment Work in the Developing World? Experimental Evidence from Ecuador By Araujo P., María Daniela; Heineck, Guido; Cruz-Aguayo, Yyannú
  8. Reciprocity or community: Different cultural pathways to cooperation and welfare By Anna Gunnthorsdottir; Palmar Thorsteinsson
  9. Preferences for Giving Versus Preferences for Redistribution By Johanna Mollerstrom; Avner Strulov-Shlain; Dmitry Taubinsky
  10. Motivated belief updating and rationalization of information By Drobner, Christoph; Goerg, Sebastian J.
  12. Interpreting the Will of the People: A Positive Analysis of Ordinal Preference Aggregation By Sandro Ambuehl; B. Douglas Bernheim
  13. Market Experiments with Multiple Assets: A survey By Duffy, John; Rabanal, Jean Paul; Rud, Olga
  14. Absolute groupishness and the demand for information By Lohse, Johannes; McDonald, Rebecca
  16. Algebraic Properties of Blackwell's Order and A Cardinal Measure of Informativeness By Andrew Kosenko
  17. Climate Change and Individual Behavior By Bernard, René; Tzamourani, Panagiota; Weber, Michael
  18. An intensive, school-based learning camp targeting academic and non-cognitive skills evaluated in a randomized trial By Hvidman, Charlotte; Koch, Alexander; Nafziger, Julia; Albeck Nielsen, Søren; Rosholm, Michael
  19. The Origins of Gender Differences in Competitiveness and Earnings Expectations: Causal Evidence from a Mentoring Intervention By Teodora Boneva; Thomas Buser; Armin Falk; Fabian Kosse
  20. The Impact of "Grow to Sell" Agricultural Extension on Smallholder Horticulture Farmers: Evidence from a Market- Oriented Approach in Kenya By Satoshi Shimizutani; Shimpei Taguchi; Eiji Yamada; Hiroyuki Yamada

  1. By: Feine, Gregor; Groh, Elke D.; von Loessl, Victor; Wetzel, Heike
    JEL: C93 D64 D91
    Date: 2021
  2. By: Nuttaporn Rochanahastin; Shinawat Horayangkura
    Abstract: This paper aims to elicit individual discount rates in Thailand using real monetary incentives in the lab-in-the-field setting. We investigate the differences in the discount rates between two different districts with different socioeconomic characteristics. One represents rural agricultural society while another represents an urban industrialised society. We also compare the results between different elicitation methods. The paper provides two main insights. First, the elicited discount rates are significantly different between the two districts. Second, the discount rates also vary across time-horizon suggesting different risk consideration with respect to the time horizon. We also address an intertemporal experimental design issue that results should be indifferent between elicitation methods and find procedural invariant between the choice and matching tasks.
    Keywords: Discount rate; Intertemporal decision making; Time preference; Lab-in-the-field Experiment
    JEL: C93 D15
    Date: 2020–12
  3. By: Stehr, Frauke; Werner, Peter
    JEL: D91 D62 H41 Q58
    Date: 2021
  4. By: Natalie Struwe; James M. Walker; Esther Blanco
    Abstract: We present experimental evidence for decision settings where public good providers compete for endogenous donations offered by outside donors. Donors receive benefits from public good provision but cannot provide the good themselves. The performance of three competition mechanisms is examined in relation to the level of public good provision and transfers offered by donors. In addition to a contest with rewards proportional to effort to all public good providers, we study two contests with exclusion from transfers, namely a winner-takes-all and a loser-gets-nothing. We compare behavior in these three decision settings to the default setting of no-transfers. Results for this novel decision environment with endogenous prizes show that contributions to the public good are not significantly different in the winner-takes-all and loser-gets-nothing settings, but donor's transfers are significantly lower in winner-takes-all. Initially, the winner-takes-all and loser-gets-nothing settings lead to a significant increase in public good contributions compared to the setting where transfers are proportional to contributions for everyone; but this difference diminishes over decision rounds. All three contest with endogenous prizes generate consistent and significantly higher public good provision compared to the setting with no-transfers.
    Keywords: Public Good, Institution, Externality, Contests, Laboratory Experiment
    JEL: D70 H41 C92
    Date: 2021
  5. By: Victor Gonzalez-Jimenez; Patricio S. Dalton; Charles N. Noussair
    Abstract: To incentivize workers and boost performance, firms often offer monetary bonuses for the achievement of production goals. Such bonuses appeal to two types of motivations of the worker. On the one hand, the existence of a goal, on its own, triggers an intrinsic motivation associated with the desire to not fall short of the goal. On the other hand, the money paid to achieve the goal constitutes an extrinsic motivation. This paper studies the possibility that these two effects are substitutes when workers set their own goals. We develop a theoretical model that predicts that if the worker is sufficiently loss averse and faces uncertainty about reaching a production goal, offering a monetary payment contingent on reaching such a goal is counterproductive. This is because under the presence of monetary bonuses, the loss averse worker prefers setting lower goals, which yield lower but more likely bonus payments. Lower goals, in turn, negatively affect subsequent performance. Results from a laboratory experiment corroborate this prediction. This paper highlights the limits of monetary bonuses as an effective incentive when workers are loss averse.
    JEL: J41 D90 C91 D81
    Date: 2019–12
  6. By: Katherine B. Coffman; Paola Ugalde Araya; Basit Zafar
    Abstract: Many decisions – such as what educational or career path to pursue – are dynamic in nature, with individuals receiving feedback at one point in time and making decisions later. Using a controlled experiment, with two sessions one week apart, we analyze the dynamic effects of feedback on beliefs about own performance and decision-making across two different domains (verbal skills and math). We find significant gender gaps in beliefs and choices before feedback: men are more optimistic about their performance and more willing to compete than women in both domains, but the gaps are significantly larger in math. Feedback significantly shifts individuals' beliefs and choices. Despite this, we see substantial persistence of gender gaps over time. This is particularly true among the set of individuals who receive negative feedback. We find that, holding fixed performance and decisions before feedback, women update their beliefs and choices more negatively than men do after bad news. Our results highlight the challenges involved in overcoming gender gaps in dynamic settings.
    JEL: C91 D80 J16
    Date: 2021–10
  7. By: Araujo P., María Daniela; Heineck, Guido; Cruz-Aguayo, Yyannú
    JEL: I20 I21 I25 I28 J45
    Date: 2021
  8. By: Anna Gunnthorsdottir; Palmar Thorsteinsson
    Abstract: In a laboratory experiment we compare voluntary cooperation in Iceland and the US. We furthermore compare the associated thought processes across cultures. The two countries have similar economic performance, but survey measures show that they differ culturally. Our hypotheses are based on two such measures, The Inglehart cultural world map and the Knack and Keefers scale of civic attitudes toward large-scale societal functioning. We prime the participants with different social foci, emphasizing in one a narrow grouping and in the other a larger social unit. In each country we implement this using two different feedback treatments. Under group feedback, participants only know the contributions by the four members of their directly cooperating group. Under session feedback they are informed of the contributions within their group as well as by everyone else in the session. Under group feedback, cooperation levels do not differ between the two cultures. However, under session feedback cooperation levels increase in Iceland and decline in the US. Even when contribution levels are the same members of the two cultures differ in their motives to cooperate: Icelanders tend to cooperate unconditionally and US subjects conditionally. Our findings indicate that different cultures can achieve similar economic and societal performance through different cultural norms and suggest that cooperation should be encouraged through culturally tailored suasion tactics. We also find that some decision factors such as Inequity Aversion do not differ across the two countries, which raises the question whether they are human universals.
    Date: 2021–10
  9. By: Johanna Mollerstrom; Avner Strulov-Shlain; Dmitry Taubinsky
    Abstract: We report the results of an online experiment studying preferences for giving and preferences for group-wide redistribution in small (4-person) and large (200-person) groups. We find that the desire to engage in voluntary giving decreases significantly with group size. However, voting for group-wide redistribution is precisely estimated to not depend on group size. Moreover, people’s perception of the size of their reference group is malleable, and affects their desire to give. These results suggest that government programs, such as progressive tax-and-transfer systems, can help satisfy other-regarding preferences for redistribution in a way that creating opportunities for voluntary giving cannot.
    JEL: D63 D9
    Date: 2021–10
  10. By: Drobner, Christoph; Goerg, Sebastian J.
    Abstract: We study belief updating about relative performance in an ego-relevant task. Manipulating beliefs about the ego-relevance of the task, we show that subjects update their beliefs about relative performance more optimistically as direct belief utility increases. This finding provides clean evidence for the optimistic belief updating hypothesis and supports theoretical models with direct belief utility. Moreover, we document that subjects ex-post rationalize information by discounting their beliefs about the ego-relevance of the task as the number of bad signals increases. Taken together, these findings suggest that subjects use two alternative strategies to protect their ego despite the presence of objective information.
    Keywords: Motivated beliefs,Optimistic belief updating,Direct belief utility,Bayes' rule,Ex-post rationalization
    JEL: C91 D83 D84
    Date: 2021
  11. By: NdihokubwayoKizito
    Abstract: Science education requires observation to internalize the fundamental scientific concepts. One tool among the responsible for observing nature is the science laboratory. However, there is a scarcity of laboratories in many schools,especially in developing countries, and most of the science teachers in those schools lack the skills for improvising materials around their environment. Therefore, in this paper, we have step by step demonstrated how to create and use the cheap and used stufffrom our environment in a science lesson. We have provided examples of science improvised materials and have shown their effectiveness in use. The paper recommends teachers to improvise as possible they can to accelerate science education effectively. Key Words: improvisation, improvised experiment, improvised material, science laboratory,science teacher
    Date: 2021–09
  12. By: Sandro Ambuehl; B. Douglas Bernheim
    Abstract: Collective decision making requires preference aggregation even if no ideal aggregation method exists (Arrow, 1950). We investigate how individuals think groups should aggregate members' ordinal preferences—that is, how they interpret "the will of the people." Our experiment elicits revealed attitudes toward ordinal preference aggregation and classifies subjects according to the rules they implicitly deploy. Majoritarianism is rare while rules that promote compromise are common. People evaluate relative sacrifice by inferring cardinal utility from ordinal ranks. Cluster analysis reveals that our classification encompasses all important aggregation rules. Aggregation methods exhibit stability across domains and across countries with divergent traditions.
    JEL: C91 D7
    Date: 2021–10
  13. By: Duffy, John (University of California); Rabanal, Jean Paul (University of Stavanger); Rud, Olga (University of Stavanger)
    Abstract: .
    Keywords: Finance; Experiments
    JEL: G00
    Date: 2021–10–24
  14. By: Lohse, Johannes; McDonald, Rebecca
    JEL: D83 D91 C91 L82
    Date: 2021
  15. By: Chiragbhai M. Darji
    Abstract: There were many research studies carried out in the field of English Language Teaching but talking about the applicability and use of such research studies in real life situation is very difficult. Keeping this in mind, the researcher tried to carry out a need based research which would surely help the teachers and the students to do well in English language learning. The target group of the study was 10th standard board examination students and selected chapters and grammar items which are placed in the blue print of 10th standard board examination. The two schools were randomly selected for the experimental study. The students of control group were not given any treatment as they studied such contents from their regular school teacher. The pre test was administered to equal the groups. The students were made to study through activity based sessions and the target goal was to learn the selected points in interactive manner and get high achievement in English. The most important findings of the study was the positive response of the students. All of them and their teachers opined that the students learnt better and they liked the researcher’s style of making the teaching need based. Instead making it more traditional and rhetoric, the researcher made it interactive. Further, this style of teaching was compared with the tutor of coaching classes as it avoided all the formalities in language teaching. The textbook based ELT programme was effective in developing language competencies among the students of experimental group and the females and males have developed equal language achievement. Both males and females developed various language and soft skills to answer the questions correctly Key Words: Language achievement, Textbook based programme, skills, Competency
    Date: 2021–09
  16. By: Andrew Kosenko
    Abstract: I establish a translation invariance property of the Blackwell order over experiments, show that garbling experiments bring them closer together, and use these facts to define a cardinal measure of informativeness. Experiment $A$ is inf-norm more informative (INMI) than experiment $B$ if the infinity norm of the difference between a perfectly informative structure and $A$ is less than the corresponding difference for $B$. The better experiment is "closer" to the fully revealing experiment; distance from the identity matrix is interpreted as a measure of informativeness. This measure coincides with Blackwell's order whenever possible, is complete, order invariant, and prior-independent, making it an attractive and computationally simple extension of the Blackwell order to economic contexts.
    Date: 2021–10
  17. By: Bernard, René; Tzamourani, Panagiota; Weber, Michael
    Abstract: This paper studies the causal effect of providing information about climate change on individuals' willingness to pay to offset CO2 emissions in a randomized control trial. Individuals that receive truthful information aboutways to reduce CO2 emissions increase their willingness to pay for CO2 offsetting relative to the control group in a within individual research design. Individuals receiving information about the behavior of peers react similarly to those receiving information about scientific research. Individuals' responses vary depending on their sociodemographic characteristics and also along a rich set of attitudes and concerns regarding climate change. In a follow up survey, we study the endogenous information acquisition of survey participants and show that individuals choose information that aligns with their prior beliefs. Individuals who choose to receive information about climate change have a higher willingness to to pay.
    Keywords: climate change,information treatment,willingness to pay,C02 compensation,information acquisition
    JEL: D10 D83 D91 Q54
    Date: 2021
  18. By: Hvidman, Charlotte; Koch, Alexander; Nafziger, Julia; Albeck Nielsen, Søren; Rosholm, Michael
    JEL: I21 C21 D91 I28
    Date: 2021
  19. By: Teodora Boneva (University of Bonn); Thomas Buser (University of Amsterdam); Armin Falk (briq and the University of Bonn); Fabian Kosse (LMU Munich)
    Abstract: We present evidence on the role of the social environment for the development of gender differences in competitiveness and earnings expectations. First, we document that the gender gap in competitiveness and earnings expectations is more pronounced among adolescents with low socioeconomic status (SES). We further document that there is a positive association between the competitiveness of mothers and their daughters, but not between the competitiveness of mothers and their sons. Second, we show that a randomized mentoring intervention that exposes low-SES children to predominantly female role models causally affects girls' willingness to compete and narrows both the gender gap in competitiveness as well as the gender gap in earnings expectations. Together, the results highlight the importance of the social environment in shaping willingness to compete and earnings expectations at a young age.
    Keywords: competitiveness, socioeconomic status, Inequality
    JEL: J16 J13 D63
    Date: 2021–10
  20. By: Satoshi Shimizutani (JICA Ogata Sadako Research Institute for Peace and Development); Shimpei Taguchi (JICA Ogata Sadako Research Institute for Peace and Development); Eiji Yamada (JICA Ogata Sadako Research Institute for Peace and Development); Hiroyuki Yamada (Faculty of Economics, Keio University)
    Abstract: This paper evaluates the impact of a market-oriented agricultural extension program called Smallholder Horticulture Empowerment and Promotion (SHEP) in Kenya. The SHEP approach prioritizes practical training for farmers to act as producers in a market by encouraging decentralized decision-making. Using a cluster randomized controlled trial (RCT) over a two-year period, we find that, on average, SHEP increased horticultural income significantly by 70% and the positive effect was more pronounced in vulnerable households whose head of household is female, less educated or older. The effect is not relevant to horticultural experience prior to the intervention. Our findings suggest that a market-oriented agricultural extension can provide a pathway to improve the living standards of small-scale farmers through an increase in horticultural income.
    Keywords: Agricultural extension, Smallholder Horticulture Empowerment Promotion (SHEP), Kenya, Randomized controlled trial (RCT), Impact evaluation
    JEL: I23 J26
    Date: 2021–10–17

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