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Grow Rich While You Sleep: Selection in Experiments with Voluntary Participation

  • Gautier, Pieter A.

    ()

    (VU University Amsterdam)

  • van der Klaauw, Bas

    ()

    (VU University Amsterdam)

We 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 as prosocial.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2373.

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Length: 24 pages
Date of creation: Oct 2006
Date of revision:
Publication status: published as 'Selection in a field experiment with voluntary participation' in: Journal of Applied Econometrics, 2012, 27, 63-84
Handle: RePEc:iza:izadps:dp2373
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  1. Ruffle, Bradley J., 1998. "More Is Better, But Fair Is Fair: Tipping in Dictator and Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 23(2), pages 247-265, May.
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  10. Botond Koszegi & Matthew Rabin, 2005. "A Model of Reference-Dependent Preferences," Levine's Bibliography 784828000000000341, UCLA Department of Economics.
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  14. Nicholas Bardsley, 2005. "Altruism or Artefact? A Note on Dictator Game Giving," Discussion Papers 2005-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
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