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Selective Trials: A Principal-Agent Approach to Randomized Controlled Experiments

  • Sylvain Chassang
  • Gerard Padro i Miquel
  • Erik Snowberg

We study the design of randomized controlled experiments in environments where outcomes are significantly affected by unobserved effort decisions taken by the subjects(agents). While standard randomized controlled trials (RCTs) are internally consistent, the unobservability of effort provision compromises external validity. We approach trial design as a principal-agent problem and show that natural extensions of RCTs -which we call selective trials- can help improve the external validity of experiments. In particular, selective trials can disentangle the effects of treatment, effort, and the interaction of treatment and effort. Moreover, they can help experimenters identify when measured treatment effects are affected by erroneous beliefs and inappropriate effort provision.

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File URL: http://www.nber.org/papers/w16343.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16343.

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Date of creation: Sep 2010
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Publication status: published as Sylvain Chassang & Gerard Padro I Miquel & Erik Snowberg, 2012. "Selective Trials: A Principal-Agent Approach to Randomized Controlled Experiments," American Economic Review, American Economic Association, vol. 102(4), pages 1279-1309, June.
Handle: RePEc:nbr:nberwo:16343
Note: HE LS PR TWP
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Web page: http://www.nber.org
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