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Revealed preferences for policy experiments

Chlond, Bettina ; Goeschl, Timo ; Lohse, Johannes

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Abstract

Randomized controlled trials remain underutilized in informing policy design, despite their potential. Moral objections to experimentation (“experiment aversion”) have been proposed as an explanation. We present three studies with members of the general public and policy-makers that allow us to measure and compare moral approval, stated preferences as well as revealed preferences for policy experimentation, within the overarching context of a public assistance program. We find that evidence based on moral approval systematically underestimates revealed preferences for policy experimentation due to conceptual misalignment and hypothetical bias. People and policy-makers trade off possible moral objections against the benefits of policy experimentation.

Document type: Working paper
Series Name: AWI Discussion Paper Series
Volume: 0763
Place of Publication: Heidelberg
Date Deposited: 01 Jul 2025 12:58
Date: 2025
Number of Pages: 58
Faculties / Institutes: The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics
DDC-classification: 330 Economics
Series: Discussion Paper Series / University of Heidelberg, Department of Economics
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