Designing information provision experiments

Information provision experiments allow researchers to test economic theories and answer policy-relevant questions by varying the information set available to respondents. We survey the emerging literature using information provision experiments in economics and discuss applications in macroeconomics, finance, political economy, public economics, labor economics, and health economics. We also discuss design considerations and provide best-practice recommendations on how to (i) measure beliefs, (ii) design the information intervention, (iii) measure belief updating, (iv) deal with potential confounds, such as experimenter demand effects, and (v) recruit respondents using online panels. We finally discuss typical effect sizes and provide sample size recommendations

Beliefs about racial discrimination and support for pro-black policies

This paper provides representative evidence on beliefs about racial discrimination and examines whether information causally affects support for pro-black policies. Eliciting quantitative beliefs about the extent of hiring discrimination against blacks, we uncover large disagreement about the extent of racial discrimination with particularly pronounced partisan differences. An information treatment leads to a convergence in beliefs about racial discrimination but does not lead to a similar convergence in support of pro-black policies. The results demonstrate that while providing information can substantially reduce disagreement about the extent of racial discrimination, it is not sufficient to reduce disagreement about pro-black policies

Information about Fewer Audits Reduces Support for Economic Relief Programs

Using a probability-based sample of the Norwegian population, we test whether an informational treatment about fewer audits by the Norwegian Tax Administration during the peak of the COVID-19 crisis affects support for an economic relief program designed to save jobs and prevent bankruptcies. The information treatment significantly reduces support for the economic relief program. The underlying mechanisms are lower trust in the tax administration and more pessimism about its ability to detect misuse of the program

Beliefs About Racial Discrimination and Support for Pro-Black Policies

We examine whether beliefs about racial discrimination causally affect support for pro-black policies. Using representative samples of Americans, we elicit quantitative and incentivized beliefs about the extent of labor market discrimination against blacks. 55 percent overestimate the extent of discrimination against blacks, and Republicans are 19 percentage points less likely than Democrats to overestimate discrimination. An information treatment substantially narrows Republican–Democrat differences in beliefs, but fails to narrow differences in political behavior. Overall, the results demonstrate that correcting biases in beliefs about the extent of racial discrimination is not sufficient to reduce political polarization in support for pro-black policies

Essays on beliefs and Political behavior

We provide nationally representative evidence of people’s beliefs about racial discrimination in the US and explore whether these beliefs causally affect support for pro-black policies. In an online experiment on a large, representative sample of Americans, we elicited incentivized beliefs about the extent of racial labor market discrimination against blacks. 55 percent of Americans overestimate the extent of discrimination against blacks, and Republicans are 19 percentage points less likely than Democrats to overestimate the extent of discrimination against blacks. To introduce exogenous variation in beliefs, we provided a random subset of our respondents with research evidence from a correspondence study that tested for discrimination against blacks in the labor market. Respondents strongly and persistently update their beliefs about racial discrimination in response to the information. Treated respondents who underestimate racial discrimination increase their donations to a pro-black civil rights organization by 17 percent of a standard deviation. This effect is entirely driven by non-Republicans, which means that the treatment fails to narrow Democrat–Republican differences in donations. In contrast to the donations, self-reported attitudes towards pro-black policies are generally unresponsive to new information. Our findings demonstrate that correcting people’s biases in beliefs about the extent of racial discrimination is not sufficient to reduce political polarization in support for pro-black policies. (JEL C91, D83, F22, J15

Beliefs About Racial Discrimination and Support for Pro-Black Policies

We examine whether beliefs about racial discrimination causally affect support for pro-black policies. Using representative samples of Americans, we elicit quantitative and incentivized beliefs about the extent of labor market discrimination against blacks. 55 percent overestimate the extent of discrimination against blacks, and Republicans are 19 percentage points less likely than Democrats to overestimate discrimination. An information treatment substantially narrows Republican–Democrat differences in beliefs, but fails to narrow differences in political behavior. Overall, the results demonstrate that correcting biases in beliefs about the extent of racial discrimination is not sufficient to reduce political polarization in support for pro-black policies