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A new perspective on the issue of selection bias in randomized controlled field experiments

Michèle Belot () and Jonathan James

Economics Letters, 2014, vol. 124, issue 3, 326-328

Abstract: Many randomized controlled trials require participants to opt in. Such self-selection could introduce a potential bias, because only the most optimistic may participate. We revisit this prediction. We argue that in many situations, the experimental intervention is competing with alternative interventions participants could conduct themselves outside the experiment. Since participants have a chance of being assigned to the control group, participating has a direct opportunity cost, which is likely to be higher for optimists. We propose a model of self-selection and show that both pessimists and optimists may opt out of the experiment, leading to an ambiguous selection bias.

Keywords: Field experiments; Selection bias; Randomized controlled trials; External validity (search for similar items in EconPapers)
JEL-codes: C4 C9 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:124:y:2014:i:3:p:326-328

DOI: 10.1016/j.econlet.2014.06.001

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