Papers - All

David S Brookshire, Donald L Coursey, Howard Kunreuther

Cited by*: 0 Downloads*: 27

No abstract available

Anya Samek

Cited by*: 0 Downloads*: 54

The gender difference in competitiveness has been cited as an important factor driving the gender gap in labor market outcomes. Using a natural field experiment with 35,000 university students, I explore the impact of compensation scheme on willingness to apply for a job. I find that competitive compensation schemes disproportionately deter women from applying, which cannot be explained by differences in risk preferences alone. I also vary whether the job is introduced as helping a non-profit, which increases application rates, suggesting a role for social preferences in application decisions. Finally, I observe a correlation between competitiveness preferences and career choice.

Simon Gachter, Henrik Orzen, Elke Renner, Chris Starmer

Cited by*: 0 Downloads*: 87

An extensive literature demonstrates the existence of framing effects in the laboratory and in questionnaire studies. This paper reports new evidence from a natural field experiment using a subject pool one might expect to be particularly resistant to such effects: experimental economists. We find that while the behaviour of junior experimental economists is affected by the description of the decision task they face, this is not the case for the more senior members of our subject pool.

Shachar Kariv, Daniel J. Lee, John A List, Michael K Price

Cited by*: 0 Downloads*: 82

We build on previous work in the charitable giving literature by examining not only how much subjects give to charity, but also which charities subjects prefer. We operationalize this choice in an artefactual field experiment with a representative sample of respondents. We then use these data to structurally model motives for giving. The novelty of this design allows us to ask several interesting questions regarding the choices one undertakes when deciding both whether and how much to give to charity. Further, we ask these questions in the context of a standard utility framework. Given the unique set up of this experiment, we also explore how these distributional preference parameters differ by charity choice and from what we have observed in the past. We find that there is more variation within demographics and charity types than across distributions.

Bruno Crepon, Julie Pernaudet

Cited by*: 0 Downloads*: 25

Disadvantaged youth are particularly at risk of under-investing in their health. Costs of healthcare and bias in health needs perceptions are likely to be key factors of underinvestment. Relying on a randomized experiment, we find that providing them with personalized information both on public health insurance and on their health status based on a medical diagnosis raises their curative and preventive investments. More specifically, they are more likely to consult a psychologist and to use contraception, while depression and risky sexual behaviors are key issues in this population. In order to distinguish between the two barriers, financial constraints and underestimation of health needs, we also test a program providing information on public health insurance only. This limited program improves their medical coverage in the same way as the combined program, but it does not translate into higher health investments. These findings highlight the importance of taking into account the role of subjective perceptions of health needs when considering health decisions among disadvantaged youth.

Junsoo Lee, John A List

Cited by*: 0 Downloads*: 4

Despite its growth in other areas of economics,time series econometric methods have not been widespread in the area of environmental and resource economics. We illustrate one use of time series methods by examining the time path of US nitrogen oxide (NOx) emission data over the period 1900-1994. The analysis highlights that proper time series methods can aid in optimal regulatory policy as well as developing empirical verification of theories put forth to explain economic phenomena. In addition, several interesting results emerge. First, we find that the emissions series contains both a permanent and random component. Second, if one attributed all of the emissions reductions to regulatory policy, intervention analysis suggests that the 1970 Clean Air Act(CAA) did not merely have transitory effects,but permanently influenced the NOx emission path. In terms of total regulatory impact, an upper bound on the emissions saved due to the 1970 CAA is in the range of 27%-48%.

Brit Grosskopf, Graeme Pearce

Cited by*: 0 Downloads*: 63

We present a natural field experiment designed to measure other{regarding preferences in the market for taxis. We employed testers of varying ethnicity to take a number of predetermined taxi journeys. In each case we endowed them with only 80% of the expected fare. Testers revealed the amount they could afford to pay to the driver mid-journey and asked for a portion of the journey for free. In a 2x2 between{subjects design we vary the length of the journey and whether drivers havereputational concerns or not. We find that the majority of drivers give at least part of the journey for free and over 25% complete the journey. Giving is found to be proportional to the length of the journey, and the drivers' reputational concerns do not explain their behaviour. Evidence of strong out{group negativity against black testers by both white and South Asian drivers is also reported. In order to link our empirical analysis to behavioural theory we estimate the parameters of a number of utility functions. The data and the structural analysis lend support to the quantitative predictions of experiments that measure other{regarding preferences, and shed further light on how discrimination can manifest itself within our preferences.

Amanda Chuan, Anya Samek

Cited by*: 0 Downloads*: 4

We conducted a field experiment with a charitable group to investigate whether giving the donor an option to write a personal message to the recipient influences giving behavior. Over 1,500 households were approached in a door-to-door campaign and randomized to either a control or a treatment in which donors could include a card for the recipient. We predict that treatment should increase contributions through making the gift more meaningful, but may also decrease contribution rate by increasing the social or other cost of donating. We find evidence in favor of the cost effect, and no evidence of increased giving.

Andreas Lange, John A List, Michael K Price

Cited by*: 0 Downloads*: 0

Auction theory represents one of the richest areas of research in economics over the past three decades. Yet, whether, and to what extent, the introduction of secondary resale markets influences bidding behavior in sealed bid first-price auctions remains under researched. This study begins by examining field data from a unique data set that includes nearly 3,000 auctions (over 10,000 individual bids) for cutting rights of standing timber in British Columbia from 1996-2000. In comparing bidding patterns across agents who are likely to have resale opportunities with those who likely do not, we find evidence that is consistent with theory. Critical evaluation of the reduced-form bidding model, however, reveals that sharp tests of the theoretical predictions are not possible because several other differences may exist across these bidder types. We therefore use a laboratory experiment to examine if the resale opportunity by itself can have the predicted theoretical effect. We find that while it does have the predicted effect, a theoretical model based on risk-averse bidders explains the overall data patterns more accurately than a model based on risk-neutral bidders. Beyond testing theory, the paper highlights the inferential power of combining naturally occurring data with laboratory data.

Luke N Condra, Mohammad Isaqzadeh, Sera Linardi

Cited by*: 0 Downloads*: 17

We unpack the psychological influence of a Muslim cleric's power over the poor in an experiment in Afghanistan. The same cleric requests contributions for a hospital from day-laborers when dressed as a civilian and as a cleric. In Civilian condition, 50% contribute and 17% make large contributions; in Cleric condition, 83% contribute but large contributions fall. Through counterfactual simulations, we find that the clerical garb compels unmotivated subjects to contribute (selection), but causes those who initially were generous to reduce their contribution (crowding out). The backlash is present only among those with formal education but is counteracted when the cleric adds a recitation of Qur'anic verses. Overall, this suggests that education mediates whether people automatically associate religious authorities with the omnipresent.

Orana Bandiera, Iwan Barankay, Imran Rasul

Cited by*: 0 Downloads*: 19

We present evidence from a firm level experiment in which we engineered an exogenous change in managerial compensation from fixed wages to performance pay based on the average productivity of lower-tier workers. Theory suggests that managerial incentives affect both the mean and dispersion of workers' productivity through two channels. First, managers respond to incentives by targeting their efforts towards more able workers, implying that both the mean and the dispersion increase. Second, managers select out the least able workers, implying that the mean increases but the dispersion may decrease. In our field experiment we find that the introduction of managerial performance pay raises both the mean and dispersion of worker productivity. Analysis of individual level productivity data shows that managers target their effort towards high ability workers, and the least able workers are less likely to be selected into employment. These results highlight the interplay between the provision of managerial incentives and earnings inequality among lower-tier workers.

David P Tracer

Cited by*: 0 Downloads*: 56

In order to test the proposition that performance in bargaining experiments is significantly affected by degree of monetarization, market integration, and relative westernization, a one-shot Ultimatum Game was conducted during the months of June and July 1998 in two villages in a rural region of Papua New Guinea: Anguganak (where the people speak Au) and Bogasip (where they speak Gnau). Although the villages are located in close proximity to one another and are relatively homogeneous culturally, and both subsist using a mixture of foraging and horticulture and have an elaborate system of exchange relationships, they are distinguished by their average degree of exposure to and integration in a cash-based economy, as well as their degree of education (both are greater in Anguganak). The different sections of the chapter provide: an ethnographic account of the two villages; a description of the experimental methods employed; a presentation and analysis of the results in terms of various indicators of wealth and market integration; and a discussion of the implications of the results. The level of offers made in the Ultimatum Game data combined for Anguganak and Bogasip were between those in western industrialized populations and the Machiguenga of Peru. There was some indication that variability in the level of market integration between the two village populations may have influenced the results, although they appeared to be equally influenced by local beliefs on reciprocity, generosity, and indebtedness, and an unfamiliarity with impersonal transactions.

Uzma Afzal, Giovanna d'Adda, Marcel Fafchamps, Farah Said

Cited by*: 0 Downloads*: 47

Theoretical and empirical work on intra-household decision making capture empowerment through bargaining weights given to individual preferences, and infer such weights from household consumption allocations. In this paper we test two key hypotheses underlying this work: first, that spousal influence is the same for all private consumption goods; and second, that women have pent up demand for pure agency. We use data from a survey and a novel laboratory experiment implemented with adult couples in Pakistan. We find that women's influence on household decisions is decreasing in the importance of the decision. We find no evidence that women have pent up demand for agency. Instead, women are less willing to pay for agency when facing an unknown man. We interpret this evidence as suggesting that women in our study population have internalized gender norms, and that these norms regulate interactions between genders most strongly outside of the household. We also find little evidence, within our experimental setting, that willingness to pay for agency is affected by the instrumental value of agency.

Nick Drydakis

Cited by*: 0 Downloads*: 3

In the spirit of the International Labour Organisation Code (2001) of decent work and respect for the human rights and dignity of persons infected or affected by HIV/AIDS, there should be no discrimination against applicants for work on the basis of real or perceived HIV status. Whilst, the successful implementation of an HIV/AIDS policy requires cooperation and trust between firms and employees, with the active involvement of workers infected and affected by HIV/AIDS (ILO [2007]). In the current study having considered the fundamental points the first ever correspondence testing was conducted in order to test whether job applicants living with HIV (still) face prejudices in the crucial stage of the selection process in Greece. Resumes differed only in applicants' health status were faxed to advertised job openings. We suggest that a HIV-positive applicant may want to identify whether firms are prone to provide any reasonable adjustments for the recruitment and interview process. Definitely, the outcomes must imply that employers use health condition as a factor when reviewing resumes, which matches the legal definition of discrimination. The rate of net discrimination against male (female) HIV positives is found to be between 82.6% and 97.8% (81.6%-98.8%) among sectors. Whilst, the degree of discrimination is randomly assigned across occupations disrelated to education level and job status. The current study initiates a key methodology which can drive world-wide researchers to conduct relevant surveys. As efforts grow up to address HIV discrimination, so does the need for a set of standard tested and validated discrimination indicators. Measurements and discrimination trends are a key tool for identifying effective anti-stigma programming.

Shagata Mukherjee, Michael K Price

Cited by*: 0 Downloads*: 26

This study takes a first step to advance our understanding of the strategic interaction between the constituent components of default in microfinance and how to mitigate them. We conduct controlled microfinance field experiments in rural India to provide a systematic analysis of the relationship between gender, group liability and moral hazard. By varying the contract structure across different microfinance games, our experiment decomposes the two moral hazard (ex-ante and ex-post) channels and find that their effect on default are counteractive rather than additive for women clients. The study facilitates heterogeneity analysis of gender on moral hazard across comparable matrilineal and patrilineal societies in two neighboring states of India. We find that matrilineal women are less risk averse and are more likely to invest in the risky project (ex-ante moral hazard) than women in patrilineal societies. Moreover, we find a reversal of gender effect on strategic default (ex-post moral hazard) across the two societies, suggesting the importance of social norms and gender roles on financial behavior. Our results indicate that policymaking in microfinance should be designed by considering the heterogeneity of diverse societies, gender roles, norms and the underlying socio-economic factors that motivate financial behavior among borrowers.

Shakun Mago, Anya Samek, Roman Sheremeta

Cited by*: 0 Downloads*: 8

We experimentally investigate the effect of social identification and information feedback on individual behavior in contests. In all treatments we find significant over-expenditure of effort relative to the standard theoretical predictions. Identifying subjects through photo display decreases wasteful effort. Providing information feedback about others' effort does not affect the aggregate effort, but it decreases the heterogeneity of effort and significantly affects the dynamics of individual behavior. A behavioral model which incorporates a non-monetary utility of winning and relative payoff maximization explains significant over-expenditure of effort. It also suggests that decrease in 'social distance' between group members through social identification promotes pro-social behavior and decreases over-expenditure of effort, while improved information feedback decreases the heterogeneity of effort.

Junsoo Lee, John A List, Mark Strazicich

Cited by*: 0 Downloads*: 2

In this paper we examine temporal properties of eleven natural resource real price series from 1870-1990 by employing a Lagrangian Multiplier unit root test that allows for two endogenously determined structural breaks with and without a quadratic trend. Contrary to previous research, we find evidence against the unit root hypothesis for all price series. Our findings support characterizing natural resource prices as stationary around deterministic trends with structural breaks. This result is important in both a positive and normative sense. For example, without an appropriate understanding of the dynamics of a time series, empirical verification of theories, forecasting, and proper inference are potentially fruitless. More generally, we show that both pre-testing for unit roots with breaks and allowing for breaks in the forecast model can improve forecast accuracy.

Ted Gayer, John Horowitz, John A List

Cited by*: 0 Downloads*: 0

Clear Skies is an economist's approach to pollution reduction. We heartily endorse its core approach, while recommending surgery for a few minor blemishes.

Steven Blader, Claudine Gartenberg, Andrea Prat

Cited by*: 0 Downloads*: 19

This paper investigates how the success of a management practice depends on the nature of the long-term relationship between the firm and its employees. A large US transportation company is in the process of fitting its trucks with an electronic on-board recorder (EOBR), which provide drivers with information on their driving performance. In this setting, a natural question is whether the optimal managerial practice consists of: (1) Letting each driver know his or her individual performance only; or (2) Also providing drivers with information about their ranking with respect to other drivers. The company is also in the first phase of a multi-year initiative to remake its internal operations. This first phase corresponds to an overhaul of the relational contract with its employees, focusing exclusively on changing values toward a greater emphasis on teamwork and empowerment. The main result of our randomized experiment is that (2) leads to better performance than (1) in a particular site if and only if the site has not yet received the values intervention, and worse performance if it has. The result is consistent with the presence of a conflict between competition-based managerial practices and a cooperation-based relational contract. More broadly, it highlights the role of intangible relational factors in determining the optimal set of managerial practices.

Uri Gneezy, Kenneth Leonard, John A List

Cited by*: 0 Downloads*: 5

This study uses a controlled experiment to explore whether there are gender differences in selecting into competitive environments across two distinct societies: the Maasai in Tanzania and the Khasi in India. One unique aspect of these societies is that the Maasai represent a textbook example of a patriarchal society whereas the Khasi are matrilineal. Similar to the extant evidence drawn from experiments executed in Western cultures, Maasai men opt to compete at roughly twice the rate as Maasai women. Interestingly, this result is reversed amongst the Khasi, where women choose the competitive environment more often than Khasi men, and even choose to compete weakly more often than Maasai men. We view these results as potentially providing insights into the underpinnings of the factors hypothesized to be determinants of the observed gender differences in selecting into competitive environments.