Ragan Petrie

Public Goods Experiments Without Confidentiality: A Glimpse Into Fund-Raising

Laboratory researchers in economics assiduously protect the confidentiality of subjects. Why? Presumably because they fear that the social consequences of identifying subjects and their choices would significantly alter the economic incentives of the game. But these may be the same social effects that institutions, like charitable fund-raising, are manipulating to help overcome free riding and to promote economic efficiency. We present an experiment that unmasks subjects in a systematic and controlled way. We show that, as intuition suggests, identifying subjects has significant effects. Surprisingly, we found that two supplemental conditions meant to mimic common fund-raising practices actually had the most dramatic influences on behavior. D 2003 Elsevier B.V. All rights reserved.

Farm Household Production Efficiency: Evidence from The Gambia

This article investigates the economic efficiency of farm households, with an application to The Gambia. The efficiency analysis is conducted not at the farm level but at the household level, thus capturing the importance of off-farm activities. Output-based measures of technical, allocative, and scale efficiency are generated using nonparametric measurements. An econometric analysis of factors affecting the efficiency indexes is then conducted using a Tobit model. Technical efficiency is fairly high indicating that access to technology is not a severe constraint for most farm households. The cost of scale inefficiency is modest. Allocative inefficiency by contrast is found to be important for the majority of farm households. On the basis of the Tobit results, imperfections in markets for financial capital and nonfarm employment contribute to significant allocative inefficiency.

Discrimination in the lab: Does information trump appearance?

Using a laboratory experiment, we find evidence consistent with statistical discrimination in a public good and group formation game. In the game, payoff relevant information is presented to subjects, thereby making it costly to discriminate when choosing group members. We find that behavior is correlated with race and people use race to predict behavior. However, race only matters when information on behavior is absent. These results are further confirmed when incentives are in place to encourage behavior that is counter to stereotypes. Not all subjects discriminate in the same way, suggesting unfamiliarity and some in-group, out-group bias. Overall, the evidence points to a lack of information rather than discriminatory preferences.

ESTIMATING THE VALUE OF WATER USE PERMITS: A HEDONIC APPROACH APPLIED TO FARMLAND IN THE SOUTHEASTERN US

In the State of Georgia, any agricultural producer who wishes to pump more than 100,000 gallons of water a day for crop irrigation is required to have an irrigation permit. The permit stays with the land and in the event of sale the permit is transferred with the property. Until recently, permits were essentially granted freely to all applicants in the Flint River water basin, without limit. In 1999, however, with increasing demand for water from growing urban Atlanta and several years of drought in the Southeast, the state of Georgia placed a moratorium on the issuance of agricultural water permits in the Flint River basin. This research exploits this policy change within a hedonic pricing framework to estimate the value of irrigation rights in the Southeast US. While the value of irrigation rights has been studied extensively in the western US, differences in property rights and legal regimes, as well as a lack of established water-rights markets in the East, leave us with little information regarding the value of irrigation rights in this setting.

ON THE PREFERENCES OF PRINCIPALS AND AGENTS

One of the reasons why market economies are able to thrive is that they exploit the willingness of entrepreneurs to take risks that laborers might prefer to avoid. Markets work because they remunerate good judgement and punish mistakes. Indeed, modern contract theory is based on the assumption that principals are less risk averse than agents. We investigate if the risk preferences of entrepreneurs are different from those of laborers by implementing experiments with a random sample of the population in a fast-growing, small-manufacturing, economic cluster. As assumed by theory, we find that entrepreneurs are more likely to take risks than hired managers. These results are robust to the inclusion of a series of controls. This lends support to the idea that risk preferences are an important determinant of selection into occupations. Finally, our lotteries are good predictors of financial decisions, thus giving support to the external validity of our risk measures and experimental methods.

What Persuades Voters? A Field Experiment on Political Campaigning

Political campaigns spend millions of dollars each voting cycle on persuading voters, and it is well established that these campaigns do affect voting decisions. What is less understood is what element of campaigningNthe content of the message or the delivery method itselfN sways voters, a question that relates back to how advertising works generally. We use a field experiment in a 2010 general election for local office to identify the persuasive mechanism behind a particular form of campaigning: candidate door-to-door canvassing. In the experiment, the candidate either canvassed a household or left literature without meeting the voters. In addition, the literature either contained information on the candidate or on how to vote. Our main result is that voters are most persuaded by personal contact (the delivery method), rather than the content of the message. Given our setting, we conclude that personal contact seems to work, not through social pressure, but by providing a costly or verifiable signal of quality. Length: 49

The Today and Tomorrow of Kids

We experimentally investigate the distribution of childrens time preferences along gender and racial lines. We find that boys are more impatient than girls and black children are no more impatient than white children. However, this pattern hides the fact that black boys have the highest discount rates of all groups. Most importantly, we show that impatience has a direct effect on behavior. An increase of one standard deviation in the discount rate increases the probability that a child has at least 3 disciplinary referrals by 5 percent. Time preferences might play a large role in setting appropriate incentives for children.

Discrimination in the Warplace: Evidence from a Civil War in Peru

Few events give the opportunity to observe the full range of human behavior as wars do. In the case of civil wars in ethnically-mixed societies, the distribution of violence across various segments of the population can provide evidence on the extent and nature of discrimination. As in the case of markets, identifying discrimination in the warplace is challenging. There is uncertainty on the reconstruction of events as well as the rationale behind the violence. We use a unique data set collected by the Peruvian Truth and Reconciliation Commission on war crimes during the 1980A¢??s to show that there is evidence of taste-based discrimination by agents of the state towards ethnic minorities and women. The evidence is robust to different assumptions on the logic of repression and missing data problems.

Gender Differences in Competitiveness: The Role of Prizes

Gender differences in competitiveness have been suggested as an explanation for the observed dearth of women in highly-ranked positions within firms. In this paper we ask: could a price mechanism be used to achieve gender balance? Our results show that if the rewards to competition are sufficiently large, women are willing to compete as much as men and will win as many competitions as men. Nonetheless, while entry increases, it is not enough to reduce average wage cost. Given the proportion of men and women willing to enter the competition at various prizes, firms whose objective is to minimize their costs would not voluntarily chose prizes which allow them to attract a balanced workforce. Hence markets forces would not be sufficient to achieve gender parity. Our experimental design also allows us to propose a new measure for competitiveness that incorporates the fact that incentives change participants’ willingness to compete, namely the minimum prize at which participants chose to enter a tournament. We find that women choose to enter at significantly higher minimum prizes and that only a small fraction of the initial gender gap can be attributed to performance, beliefs, and general factors such as risk and feedback aversion. Thus, even though for some prizes women behave as competitively as men, women nevertheless are less competitive than men.

Negative campaigning, fundraising, and voter turnout: A field experiment

Why do candidates risk alienating voters by engaging in negative campaigning? One answer may lie in the large empirical literature indicating that negative messages are more effective than positive messages in getting individuals to do many things, including voting and purchasing goods. Few contributions to this literature, however, gather data from a field environment with messages whose tone has been validated. We conduct field experiments in two elections for local office which test the effect of confirmed negative and positive letters sent to candidates’ partisans on two measurable activities: donating to the candidate and turning out to vote. We find that message tone increases partisan support in ways that may help explain the persistence of negative campaigning. Negative messages are no better than positive messages at earning the candidates donations, but negative messages yield significantly higher rates of voter turnout among the candidates’ partisans relative to positive messages. Positive messages, however, are not neutral relative to no message.