CeDEx
Centre for Decision Research and Experimental Economics
   
   
  

CeDEx 2015-08: Combining "Real Effort" with Induced Effort Costs: The Ball-Catching Task

Abstract

We introduce the "ball-catching task", a novel computerized real effort task, which combines "real" efforts with induced material cost of effort. The central feature of the ball-catching task is that it allows researchers to manipulate the cost of effort function as well as the production function, which permits quantitative predictions on effort provision. In an experiment with piece-rate incentives we find that the comparative static and the point predictions on effort provision are remarkably accurate. We also present experimental findings from three classic experiments, namely, team production, gift exchange and tournament, using the task. All of the results are closely in line with the stylized facts from experiments using purely induced values. We conclude that the ball-catching task combines the advantages of real effort with induced values, which is useful for theory-testing purposes as well as for applications.

Download the paper in PDF format

Now published in Experimental Economics, online 9 September 2015

Authors

Simon Gächter, Lingbo Huang and Martin Sefton

 View all CeDEx discussion papers | View all School of Economics featured discussion papers

 

Posted on Thursday 28th May 2015

Centre for Decision Research and Experimental Economics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

telephone: +44 (0)115 951 4763
Enquiries: suzanne.robey@nottingham.ac.uk
Experiments: cedex@nottingham.ac.uk