A Monte Carlo Analysis of the Fisher Randomization Technique: Reviving Randomization for Experimental Economists

This file is part of IDEAS, which uses RePEc data

A Monte Carlo Analysis of the Fisher Randomization Technique: Reviving Randomization for Experimental Economists

Author Info

Robert Moir

Abstract

Data created in a controlled laboratory setting are a relatively new phenomenon to economists. Traditional data analysis methods using either parametric or nonparametric tests are not necessarily the best option available to economists analyzing laboratory data. In 1935, Fisher proposed the randomization technique as an alternative data analysis method when examining treatment effects. The observed data are used to create a test statistic. Then treatment labels are shuffled across the data and the test statistic is recalculated. The original statistic can be ranked against all possible test statistics that can be generated by these data, and a p-value can be obtained. A Monte Carlo analysis of t-test, the Mann-Whitney U-test, and the exact randomization t-test is conducted. The exact randomization t-test compares favorably to the other two tests both in terms of size and power. Given the limited distributional assumptions necessary for implementation of the exact randomization test, these results suggest that experimental economists should consider using the exact randomization test more often. Copyright Economic Science Association 1998

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Springer in its journal Experimental Economics.

Volume (Year): 1 (1998)
Issue (Month): 1 (June)
Pages: 87-100
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:kap:expeco:v:1:y:1998:i:1:p:87-100

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102888

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Kenneth S. Chan & Stuart Mestelman & R. Andrew Muller, 1998. "Voluntary Provision of Public Goods," McMaster Experimental Economics Laboratory Publications 1998-02, McMaster University. [Downloadable!]
Mestelman, Stuart & Welland, Douglas, 1988. "Advance Production in Experimental Markets," Review of Economic Studies, Blackwell Publishing, vol. 55(4), pages 641-54, October. [Downloadable!] (restricted)
Kenneth S, et al Chan, 1996. "The Voluntary Provision of Public Goods under Varying Income Distributions," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 54-69, February. [Downloadable!] (restricted)
Kennedy, Peter E, 1995. "Randomization Tests in Econometrics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 85-94, January.

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Klaus Abbink & Jordi Brandts, 2002. "Price competition under cost uncertainty: A laboratory analysis," UFAE and IAE Working Papers 550.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
Klaus Abbink & Jordi Brandts, 2005. "Collusion in Growing and Shrinking Markets: Empirical Evidence from Experimental Duopolies," Discussion Papers 2005-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
Rob Moir, 2004. "Lotteries as a funding tool for financing public goods," CEEL Working Papers 0401, Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia. [Downloadable!]
Klaus Abbink & Jordi Brandts, 2005. "Collusion in Growing and Shrinking Markets: Empirical Evidence from Experimental Duopolies," UFAE and IAE Working Papers 648.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
Kenneth Chan & Stuart Mestelman & Robert Moir & R. Muller, 1999. "Heterogeneity and the Voluntary Provision of Public Goods," Experimental Economics, Springer, vol. 2(1), pages 5-30, August. [Downloadable!] (restricted)
Other versions:
- Kenneth S. Chan & Stuart Mestelman & Rob Moir & R. Andrew Muller, 1998. "Heterogeneity and the Voluntary Provision of Public Goods," Department of Economics Working Papers 1998-04, McMaster University. [Downloadable!]
Nathaniel T. Wilcox & Mark V. Van Boening, 2003. "Distribution and Dynamics in a Simple Tax Regime Transition," Working Papers 2003-02 Classification-C9, Department of Economics, University of Houston. [Downloadable!]
Klaus Abbink & Matthew Ellman, 2004. "The Donor Problem," Economics Working Papers 796, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2005. [Downloadable!]

Statistics

Access and download statistics

Did you know? RePEc encourages publishers to make their bibliographic data freely available to the public.

This page was last updated on 2008-8-11.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.