Do Natural Field Experiments Afford Researchers More or Less Control than Laboratory Experiments? A Simple Model

Omar Al-Ubaydli and John List

No 20877, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A commonly held view is that laboratory experiments provide researchers with more “control” than natural field experiments, and that this advantage is to be balanced against the disadvantage that laboratory experiments are less generalizable. This paper presents a simple model that explores circumstances under which natural field experiments provide researchers with more control than laboratory experiments afford. This stems from the covertness of natural field experiments: laboratory experiments provide researchers with a high degree of control in the environment which participants agree to be experimental subjects. When participants systematically opt out of laboratory experiments, the researcher’s ability to manipulate certain variables is limited. In contrast, natural field experiments bypass the participation decision altogether and allow for a potentially more diverse participant pool within the market of interest. We show one particular case where such selection is invaluable: when treatment effects interact with participant characteristics.

JEL-codes: C9 C91 C92 C93 (search for similar items in EconPapers)
Date: 2015-01
New Economics Papers: this item is included in nep-exp
Note: EEE PE
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Citations: View citations in EconPapers (38)

Published as Al-Ubaydli, Omar, and John A. List. 2015. "Do Natural Field Experiments Afford Researchers More or Less Control Than Laboratory Experiments?" American Economic Review, 105 (5): 462-66. DOI: 10.1257/aer.p20151013

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Working Paper: Do Natural Field Experiments Afford Researchers More or Less Control than Laboratory Experiments? A Simple Model (2015)
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