Development Economics X Paper Model Sixteen
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We study how quasi-hyperbolic discounting affects the design and implementation of selective trials, which are randomized controlled experiments that account for subjects’ unobserved effort. We show that quasi-hyperbolic preferences may create confounding effects of treatment and effort, and may induce biases in policy choices and evaluations. We propose commitment trials that use commitment devices to overcome these problems. We also consider the case where both the subjects and the principals (researchers or policymakers) have quasi-hyperbolic preferences.
Opoku-Agyemang, Kweku (2023). "Commitment Trials: Psychological Selective Trials for Randomized Experiments." Development Economics X Paper Model Sixteen.
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