Source Study: 'A Fine Is a Price' (Gneezy & Rustichini, 2000)
The primary source for the daycare field experiment is a 2000 paper by Uri Gneezy and Aldo Rustichini titled 'A Fine Is a Price'. It was published in Volume 29 of The Journal of Legal Studies on pages 1-17, providing the full details of the study's design and outcomes.
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Deterring Late Pick-ups at Daycare Centers
Source Study: 'A Fine Is a Price' (Gneezy & Rustichini, 2000)
An economist wants to test the hypothesis that providing small, performance-based cash bonuses to teachers can improve student test scores. Which of the following research designs best exemplifies a field experiment to investigate this question?
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A study is conducted by analyzing pre-existing government data to determine if there is a correlation between the introduction of a new public transit line and changes in local employment rates. This study qualifies as a field experiment because it examines economic behavior in a real-world setting.
A team of economists is designing a field experiment to test whether providing free tutoring services improves the final exam scores of university students. Arrange the following key steps of their research process into the correct logical order.
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To isolate the causal impact of an economic intervention in a real-world setting, a field experiment crucially relies on the process of ______ to divide participants into treatment and control groups, thereby ensuring that the groups are statistically comparable before the intervention begins.
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Learn After
Field Experiment on Fining Parents for Late Pick-ups at Daycare
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A field experiment was conducted in several daycare centers where, previously, there was no penalty for parents who picked up their children late. In a portion of these centers, a small monetary fine was introduced for late pickups. Counterintuitively, the introduction of the fine led to an increase in the number of parents arriving late. Which of the following statements best analyzes the mechanism behind this outcome?
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Based on the findings from the field experiment on daycare lateness, imposing a monetary fine for late pickups successfully reinforced the existing social norm that being on time is a matter of courtesy.
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In a famous economic experiment, introducing a small monetary fine for parents who picked up their children late from a daycare center surprisingly led to an increase in late pickups. The fine seemed to change the parents' perception from a social obligation (feeling guilty for being late) to a market transaction (paying for a service). If a new experiment were conducted where the fine was made substantially larger—equal to the full cost of one day of care—what would be the most likely outcome?
In a well-known economic field experiment, a small monetary fine was introduced at some daycare centers to discourage parents from picking up their children late. The fine unexpectedly led to an increase in lateness. Match each key concept from the analysis of this experiment with its correct description.
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