Browsing by Subject "field experiment"
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Item On the use of cheap talk in hypothetical product valuation: a field experiment(2009-05-15) Silva, AndresExperimental willingness to pay (WTP) studies can be classified as hypothetical or non-hypothetical. In a hypothetical study, such as conjoint analysis, a subject does not need to make a real economic commitment. In contrast, in a non-hypothetical task such as in experimental auctions, a subject may need to actually buy the product. Subjects in hypothetical studies tend to overstate their true WTP. Consequently, researchers need to correct hypothetical values to obtain reliable WTP estimates. Recently, incentive-aligned and cheap talk approaches have been proposed as ways to correct for hypothetical bias. In a hypothetical task, a cheap talk script explicitly reminds the subject about the hypothetical nature of the task and its expected consequences. In an incentive-aligned task (non-hypothetical), subjects are randomly selected to physically buy the product. The objective of our study is to assess and compare the reduction of hypothetical bias in consumers? willingness to pay for novel products by applying a generic, short, and neutral cheap talk script in a retail setting. To accomplish this objective, we employ non-hypothetical, hypothetical, and hypothetical with cheap talk treatments in our experimental design. We conducted our experimental retail study using conjoint analysis and open-ended elicitation mechanisms, utilizing Becker DeGroot Marshak (BDM) mechanism for the incentive-aligned treatments. Consistently in both elicitation mechanisms, using seemingly unrelated and random-effect Tobit techniques, we find that our cheap talk script is effective in eliminating the hypothetical bias. As expected, the hypothetical WTP values are significantly higher than the non-hypothetical values but the hypothetical values with cheap talk are not significantly different from incentive-aligned or non-hypothetical estimates. In addition, we find that open-ended estimates are significantly higher than conjoint analysis estimates and that emotions and familiarity can have significant impacts on WTP estimates.Item Three Essays on Impact Evaluation of Public Policies(2015-03-03) Sanchez, Gonzalo EduardoThis dissertation analyzes the impact of three public policies. Each essay attempts to identify the effects of a specific public policy using different methods. The first studies the effect of low-cost intervention on tax compliance. To overcome confounding factors, I use a regression discontinuity design that exploits a discrete increase in the probability of receiving a non-compliance notification. Results indicate that the notification significantly increases taxes paid by around $1,400, or 70 percent. These findings indicate that inexpensive tax compliance interventions can be used effectively by tax authorities in low-income countries. The second essay studies data collected in a field experiment that provides information to households to promote conservation of electricity. Households received one of three different information interventions: (1) make a price notch salient, (2) make a social comparison, or (3) do both. Results corresponding to households with historical consumption above the notch indicate that the social comparison information reduces consumption by around 1%, and that the price salience information effect is not statistically significant. These findings imply that the social comparison treatment was more effective in promoting conservation. However, there is also suggestive evidence that the effect of the price salience treatment exists for households who were just above the notch, whereas the effect of the social comparison is significant for both households who were just above and well above the notch. The results suggest that similar interventions could be used in longer term projects to promote conservation and reduce the fiscal burden of electricity subsidies. The last essay examines the effect of the Arizona Immigration Law of 2010 (SB 1070) on the noncitizen Hispanic state population. Results indicate that this bill produced a significant reduction in the proportion of Hispanic noncitizens living in Arizona estimated to be between 10% and 16%. However, this effect lasted less than one year, as the evidence suggests that it vanishes after a few months. The findings imply that the response of the undocumented population facing higher risk of deportation is to quickly move out. The findings also suggest that when that risk diminishes, the undocumented population tends to increase.