Grow rich while you sleep: Selection in Experiments with Voluntary Participation
AbstractWe use data from a promotion campaign of NH-Hoteles to study self-selection of participants in a gift-exchange experiment. The promotion campaign allowed guests to pay any non negative amount of money for a stay in one of 36 hotels in Belgium and the Netherlands. The data allow us to distinguish between `regular guests', who booked prior to the announcement of the promotion campaign and guests who booked after the campaign was announced. During the promotion campaign we varied the posted price of a room that was communicated to the guests. Only the regular guests respond to the exogenous variation in the posted price and they pay substantially more on average. This different behavior cannot be explained by differences in satisfaction or observed compositional differences between both groups. We argue that the promotion campaign mainly attracted individuals who find it relatively unimportant to be viewed of as prosocial.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-088/3.
Date of creation: 11 Oct 2006
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field experiment; gift-exchange game; self-selection;
Other versions of this item:
- Pieter Gautier & Bas van der Klaauw, 2006. "Grow rich while you sleep: Selection in experiments with voluntary participation," Natural Field Experiments 00245, The Field Experiments Website.
- Gautier, Pieter & van der Klaauw, Bas, 2006. "Grow Rich While You Sleep: Selection in Experiments with Voluntary Participation," IZA Discussion Papers 2373, Institute for the Study of Labor (IZA).
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-CBE-2006-11-18 (Cognitive & Behavioural Economics)
- NEP-EXP-2006-11-18 (Experimental Economics)
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