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on Experimental Economics |
| By: | Tsegay Tekleselassie; Marc Witte; Jonas Radbruch; Lukas Hensel; Ingo E. Isphording |
| Abstract: | We conduct a field experiment with job seekers to investigate how feedback influences job search and labor market outcomes. Job seekers who receive feedback on their ability compared to other job seekers update their beliefs and increase their search effort. Specifically, initially underconfident individuals intensify their job search. In contrast, overconfident individuals do not adjust their behavior. Moreover, job seekers’ willingness-to-pay (WTP) for feedback predicts treatment effects: only among underconfident individuals with positive WTP, we observe significant increases in both search effort and search success. We present suggestive evidence that this pattern arises from heterogeneity in how job seekers perceive the relevance of relative cognitive ability to job search returns. While the intervention appears cost-effective, job seekers’ WTP remains insufficient to cover its costs. |
| Keywords: | job search, overconfidence, feedback, willingness-to-pay, field experiment |
| JEL: | C93 J24 J64 J22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11746 |
| By: | Laura Brandimarte; Jerg Gutmann; Gerd Muehlheusser; Franziska Weber |
| Abstract: | We examine the trade-off between functionality and data privacy inherent in many AI products by conducting a randomized survey experiment with 1, 734 participants from the US and several European countries. Participants’ willingness to adopt a hypothetical, AI-enhanced app is measured under three sets of treatments: (i) installation defaults (opt-in vs. opt-out), (ii) salience of data privacy risks, and (iii) regulatory regimes with different levels of data protection. In addition, we study how the willingness to adopt depends on individual attitudes and preferences. We find no effect of defaults or salience, while a regulatory regime with stricter privacy protection increases the likelihood that the app is adopted. Finally, greater data privacy concerns, greater risk aversion, lower levels of trust, and greater skepticism toward AI are associated with a significantly lower willingness to adopt the app. |
| Keywords: | artificial intelligence, privacy concerns, randomized survey experiment, smart products, technology adoption |
| JEL: | D80 D90 K24 L86 Z10 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11774 |
| By: | Mathieu Chevrier (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | Understanding an agent's true competencies is crucial for a principal, particularly when delegating tasks. A principal may assign a task to an AI system, which is often perceived as highly competent, even in domains where its actual capabilities are limited. This experimental study demonstrates that participants mistakenly bet on ChatGPT-3.5's ability to solve mathematical tasks, even when explicitly informed that it only processes textual data. This overestimation leads participants to earn 67.2% less compared to those who rely on the competencies of another human. Overconfidence in ChatGPT-3.5 persists irrespective of task difficulty, time spent using ChatGPT-3.5, nor prior experience posing mathematical or counting questions to it mitigates this bias. I highlight that overconfidence in ChatGPT-3.5 is driven by the algorithm's social reputation. The more participants perceive ChatGPT-3.5 as socially trusted, the more they tend to rely on it. |
| Keywords: | ChatGPT-3.5, Overconfidence, Competence, Social Reputation, Overreliance, Laboratory experiment |
| JEL: | C92 D91 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-12 |
| By: | Eléonore Dodivers (Université Côte d'Azur, CNRS, GREDEG, France); Ismaël Rafaï (Toulouse School of Economics, Toulouse School of Management) |
| Abstract: | This paper investigates Artificial intelligence Large Language Models (AI-LLM) social preferences’ in Dictator Games. Brookins and Debacker (2024, Economics Bulletin) previously observed a tendency of ChatGPT-3.5 to give away half its endowment in a standard Dictator Game and interpreted this as an expression of fairness. We replicate their experiment and introduce a multiplicative factor on donations which varies the efficiency of the transfer. Varying transfer efficiency disentangles three donation explanations (inequality aversion, altruism, or focal point). Our results show that ChatGPT-3.5 donations should be interpreted as a focal point rather than the expression of fairness. In contrast, a more advanced version (ChatGPT-4o) made decisions that are better explained by altruistic motives than inequality aversion. Our study highlights the necessity to explore the parameter space, when designing experiments to study AI-LLM preferences. |
| Keywords: | Artificial Intelligence, Large Language Models, Dictator Games, Experimental Economics, Social Preferences |
| JEL: | D90 O33 C02 C91 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-09 |
| By: | Berlingieri, Francesco; Kovacic, Matija; Stepanova, Elena |
| Abstract: | Using a large-scale incentivized trust game experiment conducted across all 27 EU member states, we find that sexual minorities exhibit greater prosocial behaviour toward another vulnerable group but not toward an unknown counterpart, compared to heterosexual individuals. The observed effects are both relationship- and context-specific. Specifically, bisexual individuals and those identifying with a sexual orientation other than lesbian, gay, or heterosexual demonstrate higher trusting behaviour toward counterparts who frequently experience loneliness. This effect is not attributable to higher expectations of return, differences in risk preferences, or the individual's own loneliness status. Furthermore, we find evidence that this relationship-specific prosocial behaviour among sexual minorities is more pronounced in countries with lower levels of LGBTIQ+ rights protection, suggesting that it is heightened in contexts where minorities face a greater risk of exclusion or discrimination. We do not find statistically significant differences in overall trustworthiness across sexual orientations. However, the results offer some evidence that bisexual individuals are more trustworthy than heterosexual trustees when they feel a strong connection to their counterpart. |
| Keywords: | Trust game, pro-sociality, LGBTIQ+, loneliness |
| JEL: | C91 C71 D64 J15 H80 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1582 |
| By: | Anwar, Chowdhury Mohammad Sakib; Georgalos, Konstantinos; SenGupta, Sonali |
| Abstract: | Gallice and Monzón (2019) present a natural environment that sustains full cooperation in one-shot social dilemmas among a finite number of self-interested agents. They demonstrate that in a sequential public goods game, where agents lack knowledge of their position in the sequence but can observe some predecessors' actions, full contribution emerges in equilibrium due to agents' incentive to induce potential successors to follow suit. Furthermore, they show that this principle extends to a number of social dilemmas, with the prominent example that of the prisoner's dilemma. In this study, we experimentally test the theoretical predictions of this model in a multi-player prisoner's dilemma environment, where subjects are not aware of their position in the sequence and receive only partial information on past cooperating actions. We test the predictions of the model, and through rigorous structural econometric analysis, we test the descriptive capacity of the model against alternative behavioural strategies, such as conditional cooperation, altruistic play and free-riding behaviour. We find that the majority resorts to free-riding behaviour, around 30% is classified as Gallice and Monzón (2019) types, followed by those with social preference considerations and the unconditional altruists. |
| Keywords: | Position uncertainty, Conditional cooperation, Social dilemma, Social preferences, Experiment, Finite mixture models |
| JEL: | C91 D64 H41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:qmsrps:202504 |
| By: | Gaul, Johannes J.; Keusch, Florian; Rostam-Afschar, Davud; Simon, Thomas |
| Abstract: | This study investigates how elements of a survey invitation message targeted to businesses influence their participation in a self-administered web survey. We implement a full factorial experiment varying five key components of the email invitation. Unlike traditional experimental setups with static group composition, however, we employ adaptive randomization in our sequential research design. Specifically, as the experiment progresses, a Bayesian learning algorithm assigns more observations to invitation messages with higher starting rates. Our results indicate that personalizing the message, emphasizing the authority of the sender, and pleading for help increase survey starting rates, while stressing strict privacy policies and changing the location of the survey URL have no response-enhancing effect. The implementation of adaptive randomization is useful for other applications of survey design and methodology. |
| Keywords: | Adaptive Randomization, Reinforcement Learning, Nonresponse, Email Invitation, Web Survey, Firm Survey, Organizational Survey |
| JEL: | C11 C44 C93 D83 M00 M40 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312576 |
| By: | Carneiro, Pedro; Cruz-Aguayo, Yyannu; Salvati, Francesca; Schady, Norbert |
| Abstract: | We study how poorly-behaved children affect learning and other outcomes of their peers using data from a unique experiment in Ecuador. Within each school, students were randomly assigned to classrooms in every grade for seven consecutive grades, between kindergarten and 6th grade. Children with persistent behavioral problems lower the math and language achievement of their classmates. The more poorly-behaved children there are in a class, the larger is the negative effect on the achievement of their classmates. These negative impacts are larger for younger children, and they persist for at least two years after exposure to a poorly-behaved peer. We find indirect evidence that children with persistent behavioral difficulties are passed around schools. |
| Keywords: | Peer effects;behavioral problems |
| JEL: | I24 I25 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14022 |
| By: | Banerjee, Sanchayan; Ferreira, Alipio |
| Abstract: | Virtual Reality (VR) enables immersive experiences that can enhance awareness about environmental problems. We measure the effectiveness of VR versus 2D in an environmental campaign using a field experiment in Brazil. 617 passers-by at a mall were randomly assigned to watch a video clip about the Amazon Forest through VR or a traditional 2D device, with some being randomly interviewed before watching the movie (control group). We find that both the 2D and VR interventions increase individuals’ propensity to (i) contribute to an Amazonian humanitarian campaign, (ii) share contact information, (iii) interact with a conservation campaign, and (iv) state pro-conservation opinions. We find no additional impact of VR compared to 2D, but VR participants were more likely to engage with pro-conservation content online 3 months later. Our findings provide cautionary evidence about the additional potential of using immersive technologies, like VR, to improve conservation behaviors compared to 2D methods. |
| Keywords: | Virtual Reality, Behavior, Environment |
| JEL: | Q01 Q5 |
| Date: | 2024–06–28 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124149 |
| By: | Columbus, Simon; Feld, Lars P.; Kasper, Matthias; Rablen, Matthew D. |
| Abstract: | This study investigates how institutional rules and fairness in enforcement affect cooperation and compliance in heterogenous groups. In a preregistered online experiment (n = 1, 254), we vary both the existence of a rule governing contributions to a public good as well as whether enforcement of the rule is biased against some players. We find that merely stating a rule has a stronger effect on behaviour than rule enforcement. Specifically, institutional rules promote cooperation by strengthening personal and social norms, which in turn sustains contributions over time. In contrast, in the absence of a rule, norms are weaker and contributions decline. Fair rule enforcement reduces free-riding and increases compliance, but it also crowds out full cooperation. Finally, we find no evidence that biased rule enforcement erodes norms, reduces cooperation, or diminishes rule compliance. Our findings highlight the crucial role of institutional rules in strengthening norms and sustaining cooperation in heterogeneous groups, even in the absence of enforcement or when rule enforcement is biased. |
| Keywords: | public goods, rule compliance, rule enforcement, social norms |
| JEL: | H41 C72 C91 C92 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:aluord:315749 |
| By: | Rodríguez Chatruc, Marisol; Stein, Ernesto H.; Vlaicu, Razvan; Zuluaga, Víctor |
| Abstract: | International trade increases aggregate welfare but also creates winners and losers, which makes free trade a contentious political issue. Recent research has established that individuals are more sensitive to anti-trade information about the prospect of employment loss than to pro-trade information regarding lower product prices and increased variety. This means that we know what works to decrease support for trade, but it is still unclear what works to increase it. In this paper, we fill this gap by studying how individual attitudes and beliefs change in response to information regarding employment losses (in import-competing sectors), to information regarding employment gains (in export-oriented sectors), and to information regarding the possibility of compensation to those displaced by trade. To this end, we conducted a large-scale survey experiment in 18 Latin American countries using nationally representative samples. Results indicate that anti-trade information reduces support for trade even if compensation to losers is mentioned and that pro-trade messages increase support only if they are worded so that a job gain is perceived. Belief updating about the consequences of increased trade on employment seems to be a relevant mechanism. Our findings have important implications on what types of messaging work to increase support for trade. |
| Keywords: | Employment;Survey experiment |
| JEL: | F13 D72 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14050 |
| By: | Fietz, Katharina; Lakemann, Tabea; Beber, Bernd; Priebe, Jan; Lay, Jann |
| Abstract: | Informal, low-quality employment in micro, small, and medium enterprises (MSMEs) remains a significant challenge in low- and middle-income countries. We present evidence from an impact evaluation of a light-touch business consulting program with a focus on employment formalization in Côte d'Ivoire. Using a randomized controlled trial with 448 MSMEs and a unique employer-employee dataset, we find that the intervention led to employment formalization, driven by greater reported minimum wage compliance and an increase in written contract provision. We show suggestive evidence that these improvements were driven by selective formalization and increased awareness of regulation. The intervention's financial implications were moderate, with findings indicating that firms partially formalized previously informal payment streams, without a significant increase in total labor costs. |
| Abstract: | Informelle, niedrigqualitative Beschäftigung in Mikro-, kleinen und mittleren Unternehmen (MSMEs) bleibt eine bedeutende Herausforderung in Ländern mit niedrigem und mittlerem Einkommen. Wir zeigen Evidenz aus einer Wirkungsevaluierung eines niedrigschwelligen Unternehmensberatungsprogramms mit Fokus auf die Formalisierung von Beschäftigung in Côte d'Ivoire. Mithilfe einer randomisierten kontrollierten Studie mit 448 MSMEs und einem innovativen Arbeitgeber-Arbeitnehmer-Datensatz stellen wir fest, dass die Intervention zur Formalisierung von Beschäftigung führte, angetrieben durch eine stärkere Einhaltung des Mindestlohns und eine Zunahme der Bereitstellung schriftlicher Verträge. Hinweise deuten darauf hin, dass diese Verbesserungen durch selektive Formalisierung und ein erhöhtes Bewusstsein für Regulierung bedingt waren. Die finanziellen Auswirkungen der Intervention waren moderat. Die Ergebnisse legen nahe, dass Unternehmen zuvor informelle Zahlungsströme teilweise formalisierten, ohne dass es zu einem signifikanten Anstieg der Gesamtarbeitskosten kam. |
| Keywords: | Employment formalization, business consulting, micro, small and medium enterprises(MSMEs), randomized controlled trial (RCT), Côte d'Ivoire |
| JEL: | O12 O17 J46 J81 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:315486 |
| By: | Hu, Xiaoran; Parke, Michael R.; Peterson, Randall S.; Simon, Grace M. |
| Abstract: | Most scholarly work concludes that leader humor positively affects emotional outcomes for followers. However, two interrelated issues with past research make this view incomplete: (a) studies often conflate the act of expressing humor with the humor’s effectiveness, and (b) existing research overlooks follower emotion regulation. In addressing these issues, we generate and test new theory that challenges the theoretical consensus, highlighting why and when leader humor expression has emotional costs for followers. Specifically, we theorize that leader humor quantity, irrespective of its quality, puts pressure on followers to engage in “surface acting” to fake or exaggerate positive emotions. We further propose that these surface acting responses are more likely to occur when followers hold high power distance values, such that followers more willingly comply with expectations to display positive emotions in response to leader humor expression. This increase in surface acting then leads to more emotional exhaustion and less job satisfaction for followers. Results from three studies—incorporating a field experiment, a laboratory experiment, and a multi-wave field study—provide support for these hypotheses. We close with a discussion of how our findings provide a unique counterpoint regarding the effects of leader humor on follower emotional outcomes. |
| Keywords: | AAM requested |
| JEL: | J50 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124433 |
| By: | Imai, Taisuke; Toussaert, Séverine; Baillon, Aurélien; Dreber, Anna; Ertaç, Seda; Johannesson, Magnus; Neyse, Levent; Villeval, Marie Claire |
| Abstract: | The open science movement has gained significant momentum over the past decade, with pre-registration and the use of pre-analysis plans being central to ongoing debates. Combining observational evidence on trends in adoption with survey data from 519 researchers, this study examines the adoption of pre-registration (potentially but not necessarily including pre-analysis plans) in experimental economics. Pooling statistics from 19 leading journals published between 2017 and 2023, we observe that the number of papers containing a pre-registration grew from seven per year to 190 per year. Our findings indicate that pre-registration has now become mainstream in experimental economics, with two-thirds of respondents expressing favorable views and 86% having pre-registered at least one study. However, opinions are divided on the scope and comprehensiveness of pre-registration, highlighting the need for clearer guidelines. Researchers assign a credibility premium to pre-registered tests, although the exact channels remain to be understood. Our results suggest growing support for open science practices among experimental economists, with demand for professional associations to guide researchers and reviewers on best practices for pre-registration and other open science initiatives. |
| Keywords: | pre-registration, pre-analysis plans, experimental economics, open science |
| JEL: | A14 C12 C18 C80 C90 I23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:220 |
| By: | Ioana Alexandra Botea; Markus Goldstein; Houngbedji, Kenneth; Florence Kondylis; Michael B. O'Sullivan; Harris Selod |
| Abstract: | In settings where women’s land rights are informal, the death of a husband can severely limit a widow’s access to land and her ability to remain in her home — especially in the absence of a male heir. This paper examines whether large-scale land formalization programs can improve widows’ land access. Using data from a randomized controlled trial in rural Benin, the analysis finds that widows in villages with land formalization are more likely to stay in their homes four years after the program, with the strongest effects among those without a male heir. The paper identifies two key mechanisms: enhanced community recognition of women’s land rights and greater decision-making power over land resources. These findings highlight the potential of land formalization to strengthen women’s tenure security and promote their long-term economic stability in similar settings. |
| Date: | 2025–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11102 |
| By: | Anna Hochleitner; Fabio Tufano; Giovanni Facchini; Valeria Rueda; Markus Eberhardt |
| Abstract: | We study the gendered impact of recommendations at different stages of the hiring process. First, using a large sample of reference letters from the academic job market for economists, we document that women receive fewer ‘ability’ and more ‘grindstone’ letters. Next, we conduct two experiments — with academic economists and a broader, college-educated, population —analyzing both recommendation and recruitment stages. These confirm that recommendations are gendered and impact recruitment. We elicit gender views and beliefs about the effectiveness of different letter types, uncovering that gender attitudes and strategic behavior based on erroneous beliefs explain referees’ choices. Finally, we decompose gender recruitment gaps into two components: one capturing differences in treatment of candidates with identical qualities, the other reflecting recruiters’ failure to account for gendered patterns in recommendations. We show that recruiters’ failure to recognize the gendered nature of reference letters undermines visible efforts to improve diversity in hiring. |
| Keywords: | gender, recruitment, diversity, experiments |
| JEL: | J16 A11 D90 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11789 |
| By: | Cziriak, Marius; Bucher-Koenen, Tabea; Alessie, Rob |
| Abstract: | Women are less likely to correctly answer the "Big-3" financial literacy questions, and a substantial share of the gap reflects women's lower confidence. In our experiment, women are more likely to choose "do not know" or refuse to answer financial literacy questions. If these options are not available, the gender gap decreases substantially. We build on the method proposed by Bucher-Koenen et al. (2021) and provide an easy-to-implement survey design applicable in cross-sectional studies that allows us to disentangle financial knowledge and confidence. We find that both financial knowledge and confidence are related to participation in the stock market. |
| Keywords: | financial knowledge, gender gap, financial decision making, measurement error, survey methodology |
| JEL: | G53 C81 D14 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312571 |
| By: | Frondel, Manuel; Helmers, Viola; Sommer, Stephan |
| Abstract: | Although there is ample empirical evidence that congestion charges can effectively reduce traffic congestion and its detrimental effects, this instrument has only been implemented in a handful European cities. On the basis of a randomized information experiment that was embedded in a survey across seven European countries, this paper empirically investigates whether information on their (i) effectiveness and (ii) a-posteriori acceptance may increase the public support for congestion charges. Relative to the control group, the results indicate that, on average, this information can raise acceptance by 9.3% and 7.1%, respectively. Moreover, while there is substantial heterogeneity in the acceptance across countries, attributing a concrete price level to the charge uniformly raises acceptance at low charge levels, but lowers it at high levels. Based on these results, we conclude that information campaigns on congestion charges and their benefits for commuters and city-dwellers are essential for fostering public support for this rarely employed transport policy instrument. |
| Abstract: | Trotz zahlreicher Studien die belegen, dass eine Städtemaut die urbane Verkehrsüberlastung und ihre negativen Auswirkungen wirksam verringern kann, wurde dieses Instrument bisher nur in einer Handvoll europäischer Städte eingeführt. Auf Grundlage eines randomisierten Informationsexperiments, das in eine Umfrage in sieben europäischen Ländern eingebettet war, wird in dieser Studie empirisch untersucht, ob Informationen (i) über die Wirksamkeit und (ii) über a-posteriori Akzeptanz von bereits eingeführten Städtemauten die Unterstützung für eine solche Maßnahme beeinflussen können. Die Ergebnisse zeigen, dass die gegebenen Informationen die Akzeptanz unter den Befragten im Durchschnitt um 9, 3 % bzw. 7, 1 % erhöhen. Darüber hinaus ist die Akzeptanz in den einzelnen Ländern zwar unterschiedlich, aber die Zuweisung eines konkreten Preisniveaus für die Gebühr erhöht die Akzeptanz in allen Ländern bei niedrigen Gebühren und senkt sie bei hohen Gebühren. Auf der Grundlage dieser Ergebnisse kommen wir zu dem Schluss, dass Informationskampagnen über Staugebühren und ihre Vorteile für Pendler und Stadtbewohner wesentlich sind, um die öffentliche Unterstützung für dieses selten eingesetzte aber effektive verkehrspolitische Instrument zu fördern. |
| Keywords: | Acceptability, congestion charge, public support, road pricing |
| JEL: | R48 C25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:315484 |
| By: | Janne Tukiainen; Ilona Lahdelma; Mika Maliranta; Risto Rönkkö; Juho Saari |
| Abstract: | Young voters’ electoral behavior has been a particular target of interest because young people waver between apolitical and radical attitudes and the formally dominant main-stream parties suffer from this the most. We examine possible explanations into why this shift away from mainstream parties is happening by a conjoint survey experiment that tested for possible differences in policy preferences between young people aged 15 –29 and adults aged 30 – 79. We also survey the respondents’ media consumption habits, political sophistication, and trust in institutions. Results show that even though young people in Finland show no differences on average in policy preferences when compared to adults, they were systematically more in favor of voting for the populist extreme right. This difference is likely to stem from the young men who have less trust in institutions and less political sophistication than adults and an increased likelihood to get their political information from TikTok. |
| Keywords: | TikTok, young voters, political communication, policy preferences, political socialization |
| Date: | 2024–12–18 |
| URL: | https://d.repec.org/n?u=RePEc:pst:wpaper:351 |
| By: | Francesco D'Acunto; Janet Gao; Lu Liu; Kai Lu; Zhengwei Wang; Jun Yang |
| Abstract: | Using a customized survey and an information-provision experiment, we establish that loan officers’ individual subjective expectations about inflation, GDP growth, and policy rates vary substantially within and across bank types and have a sizable causal effect on credit supply decisions. Decisions about loan issuance and pricing exhibit large heterogeneity based on loan officers’ subjective expectations even for the same borrower assessed at the same time. Moreover, officers with rosier macroeconomic expectations penalize less borrowers with worsening fundamentals than do officers with more pessimistic expectations. Our findings have implications for theories of financial intermediation and reveal an overlooked human-based friction to the transmission of monetary policy. |
| Keywords: | credit supply, financial frictions, behavioral macroeconomics, behavioral finance, monetary policy, banking, micro-to-macro, randomized control trials, surveys. |
| JEL: | D84 D91 E44 G21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11780 |
| By: | Agata Mirowska (NEOMA - Neoma Business School); Jbid Arsenyan (ESC [Rennes] - ESC Rennes School of Business) |
| Abstract: | Deploying Artificial Intelligence (AI) for job interview evaluations, while a potential signal of high innovativeness, may risk suggesting poor people orientation on the part of the organisation. This study utilizes an experimental methodology to investigate whether AI evaluation (AIE) is interpreted as a positive (high innovativeness) or negative (low people orientation) signal by the job applicant, and whether the ensuing effects on attitudes towards the organisation depend on the type of organization implementing the technology. Results indicate that AIE is interpreted more strongly as a signal of how the organisation treats people rather than of how innovative it is. Additionally, removing humans from the selection process appears to be a ‘bridge too far', when it comes to technological advances in the selection process. |
| Keywords: | applicant reactions, artificial intelligence, experimental design, job interview, personnel selection, signalling theory |
| Date: | 2025–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04996541 |
| By: | Mackenzie Alston; Tatyana Deryugina; Olga Shurchkov |
| Abstract: | There is much disagreement about the extent to which financial incentives motivate study participants. We elicit preferences for being paid for completing a survey, including a one-in-twenty chance of winning a $100 electronic gift card, a guaranteed electronic gift card with the same expected value, and an option to refuse payment. More than twice as many participants chose the lottery as chose the guaranteed payment. Given that most people are risk averse, this pattern suggests that factors beyond risk preferences—such as hassle costs—influenced their decision-making. Almost 20 percent of participants actively refused payment, demonstrating low monetary motivation. We find both systematic and unobserved heterogeneity in the characteristics of who turned down payment. The propensity to refuse payment is more than four times as large among individuals 50 and older compared to younger individuals, suggesting a tradeoff between financially motivating participants and obtaining a representative sample. Overall, our results suggest that modest electronic gift card payments violate key requirements of Vernon Smith’s induced value theory. |
| Keywords: | incentives, motivation, induced value theory |
| JEL: | C83 C90 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11788 |
| By: | Schmidt, Jan-Hendrik; Bartsch, Sebastian Clemens; Adam, Martin; Benlian, Alexander |
| Abstract: | The increasing proliferation of artificial intelligence (AI) systems presents new challenges for the future of information systems (IS) development, especially in terms of holding stakeholders accountable for the development and impacts of AI systems. However, current governance tools and methods in IS development, such as AI principles or audits, are often criticized for their ineffectiveness in influencing AI developers’ attitudes and perceptions. Drawing on construal level theory and Toulmin’s model of argumentation, this paper employed a sequential mixed method approach to integrate insights from a randomized online experiment (Study 1) and qualitative interviews (Study 2). This combined approach helped us investigate how different types of accountability arguments affect AI developers’ accountability perceptions. In the online experiment, process accountability arguments were found to be more effective than outcome accountability arguments in enhancing AI developers’ perceived accountability. However, when supported by evidence, both types of accountability arguments prove to be similarly effective. The qualitative study corroborates and complements the quantitative study’s conclusions, revealing that process and outcome accountability emerge as distinct theoretical constructs in AI systems development. The interviews also highlight critical organizational and individual boundary conditions that shape how AI developers perceive their accountability. Together, the results contribute to IS research on algorithmic accountability and IS development by revealing the distinct nature of process and outcome accountability while demonstrating the effectiveness of tailored arguments as governance tools and methods in AI systems development. |
| Date: | 2025–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153713 |
| By: | Schmidt, Jan-Hendrik; Bartsch, Sebastian Clemens; Adam, Martin; Benlian, Alexander |
| Abstract: | The increasing proliferation of artificial intelligence (AI) systems presents new challenges for the future of information systems (IS) development, especially in terms of holding stakeholders accountable for the development and impacts of AI systems. However, current governance tools and methods in IS development, such as AI principles or audits, are often criticized for their ineffectiveness in influencing AI developers’ attitudes and perceptions. Drawing on construal level theory and Toulmin’s model of argumentation, this paper employed a sequential mixed method approach to integrate insights from a randomized online experiment (Study 1) and qualitative interviews (Study 2). This combined approach helped us investigate how different types of accountability arguments affect AI developers’ accountability perceptions. In the online experiment, process accountability arguments were found to be more effective than outcome accountability arguments in enhancing AI developers’ perceived accountability. However, when supported by evidence, both types of accountability arguments prove to be similarly effective. The qualitative study corroborates and complements the quantitative study’s conclusions, revealing that process and outcome accountability emerge as distinct theoretical constructs in AI systems development. The interviews also highlight critical organizational and individual boundary conditions that shape how AI developers perceive their accountability. Together, the results contribute to IS research on algorithmic accountability and IS development by revealing the distinct nature of process and outcome accountability while demonstrating the effectiveness of tailored arguments as governance tools and methods in AI systems development. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:154037 |
| By: | Dirk Bergemann (Yale University); Kevin Breuer; Peter Cramton (Max Planck Institute for Research on Collective Goods and University of Maryland); Jack Hirsch (Harvard University); Yero S. Ndiaye (University of Cologne and Max Planck Institute for Research on Collective Goods); Axel Ockenfels (University of Cologne and Max Planck Institute for Research on Collective Goods) |
| Abstract: | A soft-floor auction asks bidders to accept an opening price to participate in an ascending auction. If no bidder accepts, lower bids are considered using first-price rules. Soft floors are common despite being irrelevant with standard assumptions. When bidders regret losing, soft-floor auctions are more efficient and profitable than standard optimal auctions. Revenue increases as bidders are inclined to accept the opening price to compete in a regret-free ascending auction. Efficiency is improved since having a soft floor allows for a lower hard reserve price, reducing the frequency of no sale. Theory and experiment confirm these motivations from practice. |
| Date: | 2025–04–14 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2438 |
| By: | Yuval Salant; Jörg L. Spenkuch; David Almog |
| Abstract: | We explore the role of memory for choice behavior in unfamiliar environments. Using a unique data set, we document that decision makers exhibit a “memory premium.” They tend to choose in-memory alternatives over out-of-memory ones, even when the latter are objectively better. Consistent with well-established regularities regarding the inner workings of human memory, the memory premium is associative, subject to interference and repetition effects, and decays over time. Even as decision makers gain familiarity with the environment, the memory premium remains economically large. Our results imply that the ease with which past experiences come to mind plays an important role in shaping choice behavior. |
| Keywords: | memory, choice behaviour, decision-making, chess960 |
| JEL: | D01 D87 D91 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11787 |
| By: | Markus Dertwinkel-Kalt; Max R. P. Grossmann |
| Abstract: | When environmental regulations are unpopular, policymakers often attribute resistance to information frictions and poor communication. We test this idea in the context of a major climate policy: Germany’s Heating Law of 2023, which mandates the phase-out of fossil fuel heating. Through a survey experiment with property owners, we examine whether providing comprehensive information about the regulation’s costs, requirements, and timeline affects adoption decisions and policy support. Despite successfully increasing factual knowledge, information provision has no significant effect on intended technology adoption, policy support, or incentivized measures of climate preferences. Instead, pre-existing environmental preferences and demographic characteristics emerge as the key predictors of responses to the regulation. A feeling that existing systems still work well and cost considerations dominate fossil fuel users’ stated reasons for non-adoption, while independence from fossil fuels and perceived contributions to the common good drive adoption among switchers. Our findings suggest that opposition to climate policy stems from fundamental preference heterogeneity rather than information frictions. This has important implications for optimal policy design, highlighting potential limits of information provision in overcoming resistance to environmental regulation. The results also speak to broader questions in political economy about the relationship between knowledge, preferences, and support for policy reform. |
| Keywords: | environmental regulation, technology adoption, information provision, political economy, climate policy |
| JEL: | D83 H31 Q48 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11759 |