Papers - Framed

John A List

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While empirical economics has made important strides over the past half century, there is a recent attack that threatens the foundations of the empirical approach in economics: external validity. Certain dogmatic arguments are not new, yet in some circles the generalizability question is beyond dispute, rendering empirical work as a passive enterprise based on frivolity. Such arguments serve to caution even the staunchest empirical advocates from even starting an empirical inquiry in a novel setting. In its simplest form, questions of external validity revolve around whether the results of the received study can be generalized to different people, situations, stimuli, and time periods. This study clarifies and places the external validity crisis into perspective by taking a unique glimpse into the grandest of trials: The External Validity Trial. A key outcome of the proceedings is an Author Onus Probandi, which outlines four key areas that every study should report to address external validity. Such an evaluative approach properly rewards empirical advances and justly recognizes inherent empirical limitations.

Kentaro Asai, Seda Ertac, Ali Hortacsu, John A List, Howard Nusbaum, Lester Tong, Karen Ye

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People often demand a greater price when selling goods that they own than they would pay to purchase the same goods- a well-known economic bias called the endowment effect. The endowment effect has been found to be muted among experienced traders, but little is known about how trading experience reduces the endowment effect. We show that when selling, experienced traders exhibit lower right anterior insula activity, but no differences in nucleus accumbens or orbitofrontal activation, compared with inexperienced traders. Furthermore, insula activation mediates the effect of experience on the endowment effect. Similar results are obtained for inexperienced traders who are incentivized to gain trading experience. This finding indicates that frequent trading likely mitigates the endowment effect indirectly by modifying negative affective responses in the context of selling.

John A List, Jeffrey A Livingston, Susanne Neckermann

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In the face of worryingly low performance on standardized test, offering students financial incentives linked to academic performance has been proposed as a potentially cost-effective way to support improvement. However, a large literature across disciplines finds that extrinsic incentives, once removed, may crowd out intrinsic motivation on subsequent, similar tasks. We conduct a field experiment where students, parents, and tutors are offered incentives designed to encourage student preparation for a high-stakes state test. The incentives reward performance on a separate low-stakes assessment designed to measure the same skills as the high-stakes test. Performance on the high-stakes test, however, is not incentivized. We find substantial treatment effects on the incented tests but no effect on the non-incented test; if anything, the incentives result in worse performance on the non-incented test. We also find evidence supporting the conclusion that the incentives crowd out intrinsic motivation to perform well on the non-incented test, but this effect is only temporary. One year later, students who had been in the incentives treatments perform better than those in the control on the same non-incented test.

Greg Allenby, Russell Belk, Catherine Eckel, Robert Fisher, Ernan Haruvy, John A List, Yu Ma, Peter Popkowski Leszczyc, Yu Wang, Sherry Xin Li

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We offer a unified conceptual, behavioral, and econometric framework for optimal fundraising that deals with both synergies and discrepancies between approaches from economics, consumer behavior, and sociology. The purpose is to offer a framework that can bridge differences and open a dialogue between disciplines in order to facilitate optimal fundraising design. The literature is extensive, and our purpose is to offer a brief background and perspective on each of the approaches, provide an integrated framework leading to new insights, and discuss areas of future research.

John A List

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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 update. In this document I update all figures and numbers to show the details for 2021. I also include the description from the 2019 paper below.

Omar Al-Ubaydli, John A List, Dana L Suskind

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Policymakers are increasingly turning to insights gained from the experimental method as a means of informing public policies. Whether-and to what extent-insights from a research study scale to the level of the broader public is, in many situations, based on blind faith. This scale-up problem can lead to a vast waste of resources, a missed opportunity to improve people's lives, and a diminution in the public's trust in the scientific method's ability to contribute to policymaking. This study provides a theoretical lens to deepen our understanding of the science of how to use science. Through a simple model, we highlight three elements of the scale-up problem: (1) when does evidence become actionable (appropriate statistical inference); (2) properties of the population; and (3) properties of the situation. We argue that until these three areas are fully understood and recognized by researchers and policymakers, the threats to scalability will render any scaling exercise as particularly vulnerable. In this way, our work represents a challenge to empiricists to estimate the nature and extent of how important the various threats to scalability are in practice, and to implement those in their original research.

Christopher Cotton, Brent R Hickman, John A List, Joseph Price, Sutanuka Roy

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We conduct a field experiment across three diverse school districts to structurally identify student motivation and study productivity parameters in a model of adolescent human capital development. By observing study time, homework task completion, and test results, we can identify individual and demographic variations in motivation and study time effectiveness. Struggling students typically do not lack motivation but rather struggle to convert study time into completed assignments and proficiency improvements. The study also attending a higher-performing school is associated with both higher productivity and higher motivation relative to peers with similar observables in lower-performing schools. Counterfactual analyses estimates that school quality differences account for a substantial share of the racial differences in test scores, and considers the impact of alternative policies aimed at reducing racial performance gaps.

Erwin Bulte, John A List, Daan van Soest

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Incomplete contracts are the rule rather than the exception, and any incentive scheme faces the risk of improving performance on incented aspects of a task at the detriment of performance on non-incented aspects. Recent research documents the effect of loss-framed versus gain-framed incentives on incentivized behavior, but how do such incentives affect overall performance? We explore potential trade-offs by conducting field experiments in an artificial "workplace". We explore two types of incentive spillovers: those contemporaneous to the incented task and those subsequent to the incented task. We report three main results. First, consonant with the extant literature, a loss aversion incentive induces greater effort on the incented task. Second, offsetting this productivity gain, we find that the quality of work decreases if quality is not specified in the incentive contract. Third, we find no evidence of harmful spillover effects to subsequent tasks; if anything, the loss aversion incentive induces more effort in subsequent tasks. Taken together, our results highlight that measuring and accounting for incentive spillovers are important when considering their overall impact.

Eszter Czibor, David Jimenez-Gomez, John A List

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What was once broadly viewed as an impossibility - learning from experimental data in economics - has now become commonplace. Governmental bodies, think tanks, and corporations around the world employ teams of experimental researchers to answer their most pressing questions. For their part, in the past two decades academics have begun to more actively partner with organizations to generate data via field experimentation. While this revolution in evidence-based approaches has served to deepen the economic science, recently a credibility crisis has caused even the most ardent experimental proponents to pause. This study takes a step back from the burgeoning experimental literature and introduces 12 actions that might help to alleviate this credibility crisis and raise experimental economics to an even higher level. In this way, we view our "12 action wish list" as discussion points to enrich the field.

Andrea Morone, Paola Tiranzoni

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This study presents an analysis of hypothetical bias in WTA valuation connected with a bargaining game setting, in a field experiment context. The field of the experiment is the History Channel television "Pawn Stars". We collected a unique dataset that allowed us to analyze not only the gap between real and hypothetical WTA but also how they affect the bargaining game and vice versa. The general aim of this paper is to study the hypothetical bias related to subjects' WTA, and the factors that mostly affect it. The main results, of our paper, show that the hypothetical bias is positive, and it depends mainly on the price range and the type of good.