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Abstract

Online labor markets have great potential as platforms for conducting experiments, as they provide immediate access to a large and diverse subject pool and allow researchers to conduct randomized controlled trials. We argue that online experiments can be just as valid – both internally and externally – as laboratory and field experiments, while requiring far less money and time to design and to conduct. In this paper, we first describe the benefits of conducting experiments in online labor markets; we then use one such market to replicate three classic experiments and confirm their results. We confirm that subjects (1) reverse decisions in response to how a decision-problem is framed, (2) have pro-social preferences (value payoffs to others positively), and (3) respond to priming by altering their choices. We also conduct a labor supply field experiment in which we confirm that workers have upward sloping labor supply curves. In addition to reporting these results, we discuss the unique threats to validity in an online setting and propose methods for coping with these threats. We also discuss the external validity of results from online domains and explain why online results can have external validity equal to or even better than that of traditional methods, depending on the research question. We conclude with our views on the potential role that online experiments can play within the social sciences, and then recommend software development priorities and best practices.

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Bibliographic Info

Paper provided by Harvard Kennedy School of Government in its series Scholarly Articles with number 4448876.

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Date of creation: 2010
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Publication status: Published in HKS Faculty Research Working Paper Series
Handle: RePEc:hrv:hksfac:4448876

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Find related papers by JEL classification:

• C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
• C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
• C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
• C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
• J2 - Labor and Demographic Economics - - Demand and Supply of Labor

References

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Cited by:

1. Dreber, Anna & Ellingsen, Tore & Johannesson, Magnus & Rand, David, 2011. "Do People Care about Social Context? Framing Effects in Dictator Games," Working Paper Series in Economics and Finance 738, Stockholm School of Economics.
2. Daniel J. Benjamin & James J. Choi & Geoffrey W. Fisher, 2010. "Religious Identity and Economic Behavior," NBER Working Papers 15925, National Bureau of Economic Research, Inc.
3. Jérôme Hergueux & Nicolas Jacquemet, 2012. "Social preferences in the online laboratory.A randomized experiment," Working Papers of LaRGE Research Center 2012-10, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France).
   
   • Jérôme Hergueux & Nicolas Jacquemet, 2012. "Social preferences in the online laboratory : A randomized experiment," Documents de travail du Centre d'Economie de la Sorbonne 12070, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
   • Jérôme Hergueux & Nicolas Jacquemet, 2012. "Social preferences in the online laboratory : A randomized experiment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00748615, HAL.
4. Dreber Almenberg, Anna & Gerdes, Christer & Gränsmark, Patrik, 2010. "Beauty Queens and Battling Knights: Risk Taking and Attractiveness in Chess," IZA Discussion Papers 5314, Institute for the Study of Labor (IZA).
5. Atalay, Kadir & Bakhtiar, Fayzan & Cheung, Stephen L. & Slonim, Robert, 2012. "Savings and Prize-Linked Savings Accounts," IZA Discussion Papers 6927, Institute for the Study of Labor (IZA).
6. Jérôme Hergueux & Nicolas Jacquemet, 2012. "Social preferences in the online laboratory : A randomized experiment," Post-Print halshs-00748615, HAL.

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