Do Participation Rates V ticipation Rates Vary with P y with Participation P ticipation Payments in yments in Laboratory Experiments?

Huizhen Zhong (), Cary Deck () and Daniel Henderson ()
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Huizhen Zhong: College of Economics and Management, South China Agricultural Universit

Working Papers from Chapman University, Economic Science Institute

Abstract: This paper reports a series of experiments designed to evaluate how the advertised participation payment impacts participation rates in laboratory experiments. Our initial goal was to generate variation in the participation rate as a means to control for selection bias when evaluating treatment efects in common laboratory experiments. Initially, we varied the advertised participation payment to 1734 people from $5 to $15 using standard email recruitment procedures, but found no statistical evidence this impacted the participation rate. A second study increased the advertised payment up to $100. Here, we fnd marginally signifcant statistical evidence that the advertised participation payment afects the participation rate when payments are large. To combat skepticism of our results, we also conducted a third study in which verbal ofers were made. Here, we found no statistically signifcant increase in participation rates when the participation payment increased from $5 to $10. Finally, we conducted an experiment similar to the frst one at a separate university. We found no statistically signifcant increase in participation rates when the participation payment increased from $7 to $15. The combined results from our four experiments suggest moderate variation in the advertised participation payment from standard levels has little impact on participation rates in typical laboratory experiments. Rather, generating useful variation in participation rates likely requires much larger participation payments and/or larger potential subject pools than are common in laboratory experiments.

Keywords: participation payment; selection bias; treatment efect; laboratory experiments (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-exp
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