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Laboratory experiments can pre-design to address power and selection issues

Published online by Cambridge University Press:  17 January 2025

Weili Ding*
Affiliation:
Queen’s University, Kingston, Canada
*

Abstract

In this paper, motivated by aspects of preregistration plans we discuss issues that we believe have important implications for how experiments are designed. To make possible valid inferences about the effects of a treatment in question, we first illustrate how economic theories can help allocate subjects across treatments in a manner that boosts statistical power. Using data from two laboratory experiments where subject behavior deviated sharply from theory, we show that the ex-post subject allocation to maximize statistical power is closer to these ex-ante calculations relative to traditional designs that balances the number of subjects across treatments. Finally, we call for increased attention to (i) the appropriate levels of the type I and type II errors for power calculations, and (ii) how experimenters consider balance in part by properly handling over-subscription to sessions.

Information

Type
Original Paper
Copyright
Copyright © Economic Science Association 2020

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Footnotes

I would like to thank one anonymous reviewer, the guest editor John Ham and Steven Lehrer for many helpful comments and suggestions that have substantially improved the manuscript. Steven Lehrer also generously provided the experimental data analyzed in the study. I wish to thank SSHRC for research support. I am responsible for all errors.

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