TY - JOUR AU - Chassang,Sylvain AU - Miquel,Gerard Padro i AU - Snowberg,Erik TI - Selective Trials: A Principal-Agent Approach to Randomized Controlled Experiments JF - National Bureau of Economic Research Working Paper Series VL - No. 16343 PY - 2010 Y2 - September 2010 UR - http://www.nber.org/papers/w16343 L1 - http://www.nber.org/papers/w16343.pdf N1 - Author contact info: Sylvain Chassang Department of Economics Bendheim Hall 316 Princeton University Princeton, NJ 08544-1021 E-Mail: chassang@princeton.edu Gerard Padro i Miquel STICERD London School of Economics Houghton Street London, WC2A 2AE UNITED KINGDOM Tel: (44) (0) 2078523554 E-Mail: g.padro@lse.ac.uk Erik Snowberg Division of Humanities and Social Sciences MC 228-77 California Institute of Technology Pasadena, CA 91125 Tel: 626/395-4094 E-Mail: snowberg@caltech.edu AB - We study the design of randomized controlled experiments in environments where outcomes are significantly affected by unobserved effort decisions taken by the subjects(agents). While standard randomized controlled trials (RCTs) are internally consistent, the unobservability of effort provision compromises external validity. We approach trial design as a principal-agent problem and show that natural extensions of RCTs -which we call selective trials- can help improve the external validity of experiments. In particular, selective trials can disentangle the effects of treatment, effort, and the interaction of treatment and effort. Moreover, they can help experimenters identify when measured treatment effects are affected by erroneous beliefs and inappropriate effort provision. ER -