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on Experimental Economics |
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Issue of 2023‒03‒20
sixteen papers chosen by |
| By: | Chapkovski, Philipp; Zakharov, Alexei |
| Abstract: | Does the animosity toward a holder of an opposite political opinion or the behavior toward someone whose opinion on a divisive issue is unknown depends on whether that opinion was disclosed or withheld voluntarily? In order to study this question, we conducted a pre-registered study in Russia, measuring the pro-war dictators' behavior towards their partners with aligned or conflicting views on the war in Ukraine using give-or-take modification of Dictator Game. In the presence of a large polarisation gap (outgroup discrimination), we did not find that intentional vs. unintentional disclosure of the recipients' positions affected the transfers of the dictators; at the same time, dictators' beliefs about the share of war supporters among experiment participants and the donations made by other dictators were causally affected. Our study is the first one to consider this dimension of social interactions, and contributes to the quickly growing literature on political polarisation. |
| Keywords: | disclosure; transparency; polarization; dictator game; war in Ukraine; Russia |
| JEL: | C91 C92 D64 D74 D82 D83 |
| Date: | 2023–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116305&r=exp |
| By: | Casoria, Fortuna (GATE, University of Lyon); Galeotti, Fabio (CNRS, GATE); Villeval, Marie Claire (CNRS, GATE) |
| Abstract: | We combined a natural experiment (the occurrence of the COVID-19 pandemic in 2020) with the tools of laboratory experiments to study whether and how an unprecedented shock on social interactions (the introduction and abrogation of a nationwide lockdown) affected the evolution of individuals' social preferences, and willingness to trust others. In a longitudinal online incentivized experiment during the first lockdown in France, we elicited the same participants' preferences for prosociality, trust and trustworthiness every week for three months. Despite the exposure to long-lasting social distancing, prosocial preferences and the willingness to reciprocate the trust of others remained stable during the whole period under study. In contrast, the lockdown had an immediate negative effect on trust, which remained at lower levels til after the lifting of such measures but recovered its initial level nine months later. The decline in trust was mainly driven by individuals who experienced financial hardship, a lack of outward exposure, and higher anxiety during the lockdown. |
| Keywords: | social preferences, trust, trustworthiness, pandemic, COVID-19, social distancing |
| JEL: | C92 K1 I18 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15929&r=exp |
| By: | Caio Waisman; Brett R. Gordon |
| Abstract: | Experiments are an important tool to measure the impacts of interventions. However, in experimental settings with one-sided noncompliance, extant empirical approaches may not produce the estimates a decision-maker needs to solve their problem. For example, these experimental designs are common in digital advertising settings, but they are uninformative of decisions regarding the intensive margin -- how much should be spent or how many consumers should be reached with a campaign. We propose a solution that combines a novel multi-cell experimental design with modern estimation techniques that enables decision-makers to recover enough information to solve problems with an intensive margin. Our design is straightforward to implement. Using data from advertising experiments at Facebook, we demonstrate that our approach outperforms standard techniques in recovering treatment effect parameters. Through a simple advertising reach decision problem, we show that our approach generates better decisions relative to standard techniques. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.13857&r=exp |
| By: | Mathias Allemand (University of Zurich); Martina Kirchberger (Trinity College Dublin); Sveta Milusheva (The World Bank); Carol Newman (Trinity College Dublin); Brent Roberts (University of Illinois at Urbana-Champaign); Vincent Thorne (Trinity College Dublin) |
| Abstract: | Non-cognitive skills are increasingly recognized as important determinants of labor market outcomes. To what extent specific skills can be affected in adulthood remains an open question. We conducted a randomized controlled trial with low-skilled employed workers in Senegal where workers were randomly assigned to receive a training intervention designed to affect conscientiousness-related skills. We found that treated workers were significantly more likely to stay in their job and have higher wages nine months after the intervention. Our findings suggest that non-cognitive skills can be affected even later in the life cycle and can have substantial labor market returns. |
| Keywords: | non-cognitiveskills, labormarkets, conscientiousness |
| JEL: | J24 M53 O15 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0123&r=exp |
| By: | Sean, Duffy; John, Smith |
| Abstract: | Noise is a pervasive feature of economic choice. However, standard economics experiments are not well equipped to study the noise because experiments are constrained: preferences are either unknown or only imperfectly measured by experimenters. As a result of these designs--where the optimal choice is not observable to the analyst--many important questions about the noise in apparently random choice cannot be addressed. We design an experiment to better understand stochastic choice by directing subjects to make incentivized binary choices between lines. Subjects are paid a function of the length of the selected line, so subjects will attempt to select the longer of the lines. We find a gradual (not sudden) relationship between the difference in the lengths of the lines and the optimal choice. Our analysis suggests that the errors are better described as having a Gumbel distribution rather than a normal distribution, and our simulated data increase our confidence in this inference. We find evidence that suboptimal choices are associated with longer response times than optimal choices, which appears to be consistent with the predictions of Fudenberg, Strack, and Strzalecki (2018). Although we note that the relationship between response time and the optimality of choice becomes weaker across trials. In our experiment, 54 of 56 triples are consistent with Strong Stochastic Transitivity and this is the median outcome in our simulated data. Finally, we find a relationship between choice and attention, although we find strong evidence that the relationship is endogenous. |
| Keywords: | Stochastic transitivity, choice theory, judgment, memory, search |
| JEL: | C91 D12 |
| Date: | 2023–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116382&r=exp |
| By: | John List |
| Abstract: | In 2019 I put together a summary of data from my field experiments website that pertained to framed field experiments. Several people have asked me if I have an update. In this document I update all figures and numbers to show the details for 2022. I also include the description from the 2019 paper below with appropriate additions |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:feb:framed:00768&r=exp |
| By: | Aydin, Deniz |
| Abstract: | I study debt relief policies in a large-scale field experiment with a unique 2-by-2-by-2 design. I then provide novel tests of models in which default is triggered by solvency, liquidity, and strategic behavior. In contrast to solvency driving decisions, modifications orthogonal to face value affect whether and when to default. Forbearance only has short-term effects, whereas rate reductions have immediate effects that persist. In contrast to liquidity being the sole trigger, reduction in payments has a weak association with default. Forbearance reduces payments twice as much as rate reductions, whereas delinquencies are more responsive to a rate reduction. Compatible with strategic behavior, unexpected news about a dollar increase in future payments increases defaults by as much as a 30-cent increase in current payments. Compatible with the endogeneity of triggers, whether a borrower is Ricardian—merely postponing forbearance is ineffective, behavior is sensitive to future payments, and defaults are strategic—is tightly linked to balance sheets. Among alternatives, results are most compatible with the interpretation whereby every default is strategic, with the endogenous trigger being influenced by liquidity and distress, as in Campbell and Cocco (2015). Findings provide a unified explanation for disagreeing results from previous debt relief studies and have implications for modeling loan modifications and the pass-through of interest rates. |
| Keywords: | debt relief, forbearance, interest rates, liquidity, strategic, randomized field experiment |
| JEL: | G51 D15 E63 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:268646&r=exp |
| By: | Zheng, Jiakun; Couprie, Helene; Hopfensitz, Astrid |
| Abstract: | 101 real couples participated in a controlled experimental risk taking task involving variations in household and individuals’ income risks, but controlling for ex-ante income inequal- ity. Our design disentangles the effect of household risk, of intra-household risk inequality and of ex-post pay-off inequality. We find that most couples (about 79%) did pool their risk at the household level when risks were borne symmetrically but a significant proportion of couples (about 36%) failed to do so when individual risks were borne asymmetrically. Furthermore, we find that intra-household risk inequality has a larger impact on non-married couples than married ones. |
| Keywords: | Experiment; Income pooling; Household risk taking; Inequality |
| JEL: | C91 C92 D19 D81 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116537&r=exp |
| By: | Arthur E. Attema (Erasmus School of Health Policy and Management |Rotterdam]); Matteo M Galizzi (LSE - London School of Economics and Political Science); Mona Groß (Universität zu Köln = University of Cologne); Heike Hennig-Schmidt (University of Bonn); Yassin Karay; Olivier L’haridon (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche); Daniel Wiesen (Universität zu Köln = University of Cologne) |
| Abstract: | We study how patient-regarding altruism is formed by medical education. We elicit and structurally estimate altruistic preferences using experimental data from a large sample of medical students (N = 733) in Germany at different progress stages in their studies. The estimates reveal substantial heterogeneity in altruistic preferences of medical students. Patient-regarding altruism is highest for freshmen, significantly declines for students in the course of medical studies, and tends to increase again for last year students, who assist in clinical practice. Also, patient-regarding altruism is higher for females and positively associated to general altruism. Altruistic medical students have gained prior practical experience in healthcare, have lower income expectations, and are more likely to choose surgery and pediatrics as their preferred specialty. |
| Keywords: | Laboratory experiment, Medical education, Online experiment, Patient-regarding altruism, Specialty choice, Structural estimation |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03980541&r=exp |
| By: | Sebastian Blesse (Ludwig Erhard ifo Center for Social Market Economy and Institutional Economics and CESifo and ZEW Mannheim); Philipp Lergetporer (Technical University of Munich, TUM School of Management, TUM Campus Heilbronn and CESifo); Justus Nover (ZEW Mannheim and University of Mannheim); Katharina Werner (ifo Center for the Economics of Education and CESifo) |
| Abstract: | A lack of transparency about policy performance can pose a major obstacle to welfare-enhancing policy competition across jurisdictions. In parallel surveys with German citizens and state parliamentarians, we document that both groups misperceive the performance of their state’s education system. Experimentally providing performance information polarizes citizens’ political satisfaction between high- and low-performing states and increases their demand for greater transparency of states’ educational performance. Parliamentarians’ support for the transparency policy is opportunistic: Performance information increases (decreases) policy support in high-performing (low-performing) states. We conclude that increasing the public salience of educational performance information may incentivize politicians to implement welfare-enhancing reforms. |
| Keywords: | yardstick competition, beliefs, information, citizens, politicians, survey experiment |
| JEL: | H11 I28 D83 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:aiw:wpaper:27&r=exp |
| By: | Xavier Ramos (Universitat Autònoma de Barcelona); Timo Verlaat (Utrecht University); Federico Todeschini (Universitat Pompeu Fabra) |
| Abstract: | While unconditional cash transfers have been studied extensively in developingcountries, little is known about their effects in a wealthier context. Through arandomized controlled trial, we study the employment effects of a generous andunconditional transfer targeting low-income families in Spain. Two years into theprogram, subjects assigned to treatment are 20 percent less likely to work thansubjects assigned to a control group. Assignment to an activation plan does notattenuate adverse effects; a more lenient transfer withdrawal rate does. It appearsthat effects are driven by subjects with children, suggesting substitution of labourfor care tasks. |
| Keywords: | welfare reform, cash transfer, basic income, policy evaluation, RCT |
| JEL: | C93 H53 I38 J64 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2023-638&r=exp |
| By: | Sylvain Chabé-Ferret (TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Institute for Advanced Studies - Institute for Advanced Studies); Philippe Le Coënt (BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Caroline Lefebvre (Laboratoire de Virologie [Toulouse] - CHU Toulouse [Toulouse]); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); François Salanié (TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Subervie Julie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Sophie S. Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | Nudges are increasingly used to alter the behavior of economic agents as an alternative to monetary incentives. However, little is known as to whether nudges can backfire, that is, how and when they may generate effects opposite to those they intend to achieve. We provide the first field evidence of a nudge that is designed to encourage pro-environmental behavior, which instead backfires. We randomly allocate a social comparison nudge inviting winegrowers to adopt biological pest control as an alternative to chemical pesticide use. We find that our nudge decreases by half the adoption of biological pest control among the largest vineyards, where the bulk of adoption occurs. We show that this result can be rationalized in an economic model where winegrowers and winegrower-cooperative managers bargain over future rents generated by the adoption of biological pest control. This study highlights the importance of experimenting on a small scale with nudges aimed at encouraging adoption of virtuous behaviors in order to detect unexpected adverse effects, particularly in contexts where negotiations on the sharing of the costs of adoption are likely to occur. |
| Keywords: | Nudges, Behavioral Economics, Pesticides, Government Policy. |
| Date: | 2023–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03971193&r=exp |
| By: | Adélaïde Fadhuile (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Daniel Llerena (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Béatrice Roussillon (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | A demand response program is a promising tool to increase the share of intermittent renewable energy in the electricity production mix. It requires that households adapt their energy consumption to the level of energy production in order to balance the grid, i.e., decrease (increase) their consumption during peak load (peak energy production) event. However, energy conservation efforts suffer from many cognitive biases that impede the optimization of electricity consumption and thus demand flexibility. This article presents a randomized field experiment aimed at introducing demand response with nonmonetary incentives coupled by a set of nudges addressing these cognitive biases. Our results are very encouraging, as demand was successfully decreased by 21% during the peak load event and increased by 17% during the peak energy production event. Our tested nudges are cheap, easy to implement and provide interesting results in demand management programs. |
| Keywords: | Randomized field experiment, Energy conservation, Nudges, Flexibility |
| Date: | 2023–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03977597&r=exp |
| By: | Mélody Leplat (L@BISEN - Laboratoire ISEN - Institut supérieur de l'électronique et du numérique (ISEN) - YO - YNCREA OUEST, AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique); Youenn Loheac (ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Eric Teillet (SensoStat) |
| Abstract: | In a context of vegetablization of meals, a range of plant-based substitutes is developing that imitate the taste and nutritional properties of meat products. Moreover, the motivations to reduce the consumption of meat products or to replace them by plant-based substitutes are based on several arguments such as health, environment or animal welfare. Through two studies, we explore the preferences for plant-based meat substitutes by combining the tools of sensory evaluation with those of experimental economics. Thus, subjects taste real products and express themselves about them, then they are exposed to choices related to these products (maintaining consumption or returning to their usual product). Our results show that a third of the participants appreciate the substitutes and are ready to renew their consumption. |
| Abstract: | Dans un contexte de végétalisation des repas se développe une offre de substituts végétaux imitant les propriétés gustatives et nutritionnelles des produits carnés. Par ailleurs, les motivations à réduire la consommation de produits carnés ou à les remplacer par des substituts végétaux repose sur plusieurs arguments tels que la santé, l'environnement ou le bien-être animal. A travers deux études, nous explorons les préférences pour des substituts végétaux à la viande en associant les outils de l'évaluation sensorielles à ceux de l'économie expérimentale. Ainsi les sujets dégustent des produits réels et s'expriment à leur sujet, puis ils sont soumis à des choix relatifs à ces produits (maintient de la consommation ou retour à leur produit habituel). Nos résultats montre qu'un tiers des participants apprécient les substituts et qu'ils sont prêt à en renouveler la consommation. |
| Keywords: | meat substitutes, sensory evaluation, choices experiment, real products |
| Date: | 2022–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03932623&r=exp |
| By: | IDA Takanori; ISHIHARA Takunori; ITO Koichiro; KIDO Daido; KITAGAWA Toru; SAKAGUCHI Shosei; SASAKI Shusaku |
| Abstract: | We develop an optimal policy assignment rule that integrates two distinctive approaches commonly used in economics—targeting by observable characteristics and targeting through self-selection . Our method uses experimental or quasi-experimental data to identify who should be treated, untreated, and who should self- select to achieve a policymaker’s objective. Applying this method to a randomized controlled trial on a residential energy rebate program, we find that targeting that leverages both observable data and self- selection outperforms conventional targeting for a standard utilitarian welfare function and welfare functions that balance the equity-efficiency trade-off. We highlight that the LATE framework (Imbens and Angrist, 1994) can be used to investigate the mechanism behind our approach. By introducing new estimators called the LATEs for takers and non-takers , we show that our method allows policymakers to identify whose self-selection would be valuable and harmful to social welfare. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23011&r=exp |
| By: | Patrick Premand (Development Impact Evaluation (DIME) Department, World Bank); Dominic Rohner (University of Lausanne and CEPR) |
| Abstract: | Conflict undermines development, while poverty, in turn, breeds conflict. Policy interventions such as cash transfers could lower engagement in conflict by raising poor households’ welfare and productivity. However, cash transfers may also trigger appropriation or looting of cash or assets. The expansion of government programs may further attract attacks to undermine state legitimacy. To investigate the net effect across these forces, this paper studies the impact of cash transfers on conflict in Niger. The analysis relies on the large-scale randomization of a government-led cash transfer program among nearly 4, 000 villages over seven years, combined with geo-referenced conflict events that draw on media and nongovernmental organization reports from a wide variety of international and domestic sources. The findings show that cash transfers did not result in greater pacification but—if anything—triggered a short-term increase in conflict events, which were to a large extent driven by terrorist attacks by foreign rebel groups (such as Boko Haram) that could have incentives to “sabotage” successful government programs. |
| Keywords: | Conflict, Terrorism, Cash Transfers, Sahel |
| JEL: | D74 I38 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hic:wpaper:382&r=exp |