A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
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Result 1 resource
Ida, T., Ito, K., & Tanaka, M. (2023). Selection on Welfare Gains: Experimental Evidence from Electricity Plan Choice. American Economic Review, 113, 2937–2973.
We study a problem in which policymakers need to screen self-selected individuals by unobserved heterogeneity in social welfare gains from a policy intervention. In our framework, the marginal treatment effects and marginal treatment responses arise as key statistics to characterize social welfare. We apply this framework to a randomized field experiment on electricity plan choice. Consumers were offered welfare-improving dynamic pricing with randomly assigned take-up incentives. We find that price-elastic consumersâ€”who generate larger welfare gainsâ€”are more likely to self-select. Our counterfactual simulations quantify the optimal take-up incentives that exploit observed and unobserved heterogeneity in selection and welfare gains.