Self-Selection into Economics Experiments is Driven by Monetary Rewards

38 Pages Posted: 11 May 2013

See all articles by Johannes Abeler

Johannes Abeler

IZA Institute of Labor Economics; University of Nottingham

Daniele Nosenzo

University of Nottingham

Abstract

Laboratory experiments have become a wide-spread tool in economic research. Yet, there is still doubt about how well the results from lab experiments generalize to other settings. In this paper, we investigate the self-selection process of potential subjects into the subject pool. We alter the recruitment email sent to first-year students, either mentioning the monetary reward associated with participation in experiments; or appealing to the importance of helping research; or both. We find that the sign-up rate drops by two-thirds if we do not mention monetary rewards. Appealing to subjects' willingness to help research has no effect on sign-up. We then invite the so-recruited subjects to the laboratory to measure a range of preferences in incentivized experiments. We do not find any differences between the three groups. Our results show that student subjects participate in experiments foremost to earn money, and that it is therefore unlikely that this selection leads to an over-estimation of social preferences in the student population.

Keywords: methodology, selection bias, laboratory experiment, field experiment, other-regarding behavior, social preferences, social approval, experimenter demand

JEL Classification: C90, D03

Suggested Citation

Abeler, Johannes and Nosenzo, Daniele, Self-Selection into Economics Experiments is Driven by Monetary Rewards. IZA Discussion Paper No. 7374. Available at SSRN: https://ssrn.com/abstract=2263650

Johannes Abeler (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Daniele Nosenzo

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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