Academic Journal
Who Opts In? Composition Effects and Disappointment from Participation Payments
| Title: | Who Opts In? Composition Effects and Disappointment from Participation Payments |
|---|---|
| Authors: | Ambuehl, Sandro, Ockenfels, Axel, Stewart, Colin |
| Contributors: | University of Zurich |
| Source: | The Review of Economics and Statistics |
| Publisher Information: | MIT Press, 2025. |
| Publication Year: | 2025 |
| Subject Terms: | rational inattention, ddc:000, ddc:330, incentives, screening, 05 social sciences, selection, 16. Peace & justice, 330 Economics, social sciences (miscellaneous), 10007 Department of Economics, composition effect, 0502 economics and business, evaluability, Economics and econometrics |
| Description: | Participation payments are used in many transactions about which people know little but can learn more: incentives for medical trial participation, signing bonuses for job applicants, or price rebates on consumer durables. Who opts into the transaction when given such incentives? We theoretically and experimentally identify a composition effect whereby incentives disproportionately increase participation among those for whom learning is harder. Moreover, these individuals use less information to decide whether to participate, which makes disappointment more likely. The learning-based composition effect is stronger in settings in which information acquisition is more difficult. |
| Document Type: | Article Other literature type |
| File Description: | application/pdf; Ambuehl_WhoOptsIn_227434.pdf - application/pdf |
| Language: | English |
| ISSN: | 1530-9142 0034-6535 |
| DOI: | 10.1162/rest_a_01268 |
| DOI: | 10.5167/uzh-227434 |
| DOI: | 10.1162/rest_a_01268/113776/who-opts-in-composition-effects-and-disappointment |
| Access URL: | https://direct.mit.edu/rest/article/doi/10.1162/rest_a_01268/113776/Who-Opts-In-Composition-Effects-and-Disappointment https://www.zora.uzh.ch/id/eprint/227434/ https://doi.org/10.5167/uzh-227434 |
| Rights: | CC BY NC ND |
| Accession Number: | edsair.doi.dedup.....e2689aacb2cd72b73c9f47e56e556707 |
| Database: | OpenAIRE |
| ISSN: | 15309142 00346535 |
|---|---|
| DOI: | 10.1162/rest_a_01268 |