American Economic Review · 2018 · 564 citations · 37 references
Social SciencesEconomicsPsychologyBehavioral EconomicsExperimental EconomicsExperimental PsychologyBehavioral Game TheoryBehavioral IncentivesDemand AnalysisDemand TheoryDiscrete Choice ModelsExperimental Analysis Of BehaviorBehavioral Responses To Monetary IncentivesDemand-side EffectsDemand-side ResponsesDiscrete Choice Demand ModelsExperimental Evaluation Of IncentivesExperimental Public Goods GamesIncentive-based Demand ResponseLaboratory Incentive Experiments
The study proposes a technique for assessing the robustness of experimental and survey findings to demand effects. The method deliberately induces demand to bound its influence, models participants’ beliefs about the researcher’s objectives, and uses demand treatments to estimate bounds and compute demand‑robust treatment effects, applied to 11 classic tasks. The bounds average 0.13 standard deviations, suggesting that typical demand effects are probably modest. JEL codes: C83, C90, D83, D91.
We propose a technique for assessing robustness to demand effects of findings from experiments and surveys. The core idea is that by deliberately inducing demand in a structured way we can bound its influence. We present a model in which participants respond to their beliefs about the researcher’s objectives. Bounds are obtained by manipulating those beliefs with “demand treatments.” We apply the method to 11 classic tasks, and estimate bounds averaging 0.13 standard deviations, suggesting that typical demand effects are probably modest. We also show how to compute demand-robust treatment effects and how to structurally estimate the model. (JEL C83, C90, D83, D91)
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