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Discussion Paper Details

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Title: Field Experiments with Firms

Author(s): Oriana Bandiera, Iwan Barankay and Imran Rasul

Publication Date: June 2011

Keyword(s): field experiments, firms and organizations

Programme Area(s): Labour Economics and Public Economics

Abstract: We discuss how the use of field experiments sheds light on long standing research questions relating to firm behavior. We present insights from two classes of experiments: within and across firms, and draw common lessons from both sets. Field experiments within firms generally aim to shed light on the nature of agency problems. Along these lines, we discuss how field experiments have provided new insights on shirking behavior, and the provision of monetary and non-monetary incentives. Field experiments across firms generally aim to uncover firms' binding constraints by exogenously varying the availability of key inputs such as labor, physical capital, and managerial capital. We conclude by discussing some of the practical issues researchers face when designing experiments and by highlighting areas for further research.

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Bibliographic Reference

Bandiera, O, Barankay, I and Rasul, I. 2011. 'Field Experiments with Firms'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8412