Abstract
We investigate the impact of conflicts of interests on randomised controlled trials in a game-theoretic framework. A researcher seeks to persuade an evaluator that the causal effect of a treatment outweighs its cost, to justify acceptance. The researcher can use private information to manipulate the experiment in three alternative ways: (i) sampling subjects based on their treatment effect, (ii) assigning subjects to treatment based on their baseline outcome, or (iii) selectively reporting experimental outcomes. The resulting biases have different welfare implications: for sufficiently high acceptance cost, in our binary illustration the evaluator loses in cases (i) and (iii) but benefits in case (ii).
Original language | English |
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Journal | Economic Journal |
Volume | 127 |
Issue number | 605 |
Pages (from-to) | F266-F304 |
ISSN | 0013-0133 |
DOIs | |
Publication status | Published - 1 Oct 2017 |
Keywords
- Faculty of Social Sciences
- Randomised controlled trials
- Strategic selection
- Welfare
- D82
- D83C10
- C90