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Field Experiments with Firms

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Author Info

  • Oriana Bandiera
  • Iwan Barankay
  • Imran Rasul

Abstract

We discuss how the use of field experiments sheds light on long-standing research questions relating to firm behavior. We present insights from two classes of experiments—within and across firms—and draw common lessons from both sets. Field experiments within firms generally aim to shed light on the nature of agency problems. Along these lines, we discuss how field experiments have provided new insights on shirking behavior and the provision of monetary and nonmonetary incentives. Field experiments across firms generally aim to uncover firms' binding constraints by exogenously varying the availability of key inputs such as labor, physical capital, and managerial capital. We conclude by discussing some of the practical issues researchers face when designing experiments and by highlighting areas for further research.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.25.3.63
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Bibliographic Info

Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 25 (2011)
Issue (Month): 3 (Summer)
Pages: 63-82

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Handle: RePEc:aea:jecper:v:25:y:2011:i:3:p:63-82

Note: DOI: 10.1257/jep.25.3.63
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References

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Citations

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Cited by:
  1. Erlend Berg & Maitreesh Ghatak & R Manjula & D Rajasekhar & Sanchari Roy, 2013. "Motivating Knowledge Agents: Can Incentive Pay Overcome Social Distance?," CSAE Working Paper Series 2013-06, Centre for the Study of African Economies, University of Oxford.
  2. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2010. "Does Product Market Competition Lead Firms to Decentralize?," Harvard Business School Working Papers 10-052, Harvard Business School.
  3. John Pencavel, 2013. "The Productivity Of Working Hours," Discussion Papers 13-006, Stanford Institute for Economic Policy Research.
  4. Olivier Armantier & Amadou Boly, 2014. "On the effects of incentive framing on bribery: evidence from an experiment in Burkina Faso," Economics of Governance, Springer, vol. 15(1), pages 1-15, February.
  5. Robert Gibbons & John Roberts, 2012. "Introduction
    [The Handbook of Organizational Economics]
    ," Introductory Chapters, Princeton University Press.
  6. Filip Matejka, 2013. "Attention Discrimination: Theory and Field Experiments," 2013 Meeting Papers 798, Society for Economic Dynamics.
  7. Nava Ashraf & Oriana Bandiera & Kelsey Jack, 2012. "No Margin, no Mission? A Field Experiment on Incentives for public service delivery," STICERD - Economic Organisation and Public Policy Discussion Papers Series 035, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  8. repec:cge:warwcg:133 is not listed on IDEAS
  9. Pencavel, John, 2014. "The Productivity of Working Hours," IZA Discussion Papers 8129, Institute for the Study of Labor (IZA).
  10. Erlend Berg & Maitreesh Ghatak & R Manjula & D Rajasekhar & Sanchari Roy, 2014. "Motivating knowledge agents: Can incentive pay overcome social distance?," The Centre for Market and Public Organisation 13/316, Department of Economics, University of Bristol, UK.
  11. Bengtsson, Niklas, 2011. "Regulation Failure and CO2-emissions: An Experimental Investigation of the Cape Town Taxi Market," Working Paper Series, Center for Labor Studies 2011:13, Uppsala University, Department of Economics, revised 12 Aug 2013.
  12. Erik Brynjolfsson & Paul Milgrom, 2012. "Complementarity in Organizations
    [The Handbook of Organizational Economics]
    ," Introductory Chapters, Princeton University Press.
  13. Sliwka, Dirk & Manthei, Kathrin, 2013. "Multitasking and the Benefits of Objective Performance Measurement - Evidence from a Field Experiment," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79968, Verein für Socialpolitik / German Economic Association.

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