NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Observational Learning: Evidence from a Randomized Natural Field Experiment

Hongbin Cai, Yuyu Chen, Hanming Fang

NBER Working Paper No. 13516
Issued in October 2007

---- Acknowledgements -----

This research was supported by Institute for Social and Policy Studies (ISPS) at Yale University with which Fang was affiliated when the project was initiated. Donald Green, Director of ISPS, provided important suggestions for the experimental design and useful general guidance about field experiments, both of which significantly improved the paper. We would also like to thank Dean Karlan, Enrico Moretti and Emmanuel Saez for helpful comments. We especially thank the site managers in Mei Zhou Dong Po restaurant chain for their enthusiastic participation and cooperation in this field experiment. We hope that their actions will spur more businesses to support randomized field experiment researches. All remaining errors are ours. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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