The (Statistical) Power of Incentives

URN to cite this document:: urn:nbn:de:bvb:355-epub-780739
DOI to cite this document:: 10.5283/epub.78073

Alekseev, Aleksandr

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Date of publication of this fulltext: 04 Nov 2025 10:15

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Abstract

I study the optimal design of monetary incentives in experiments where incentives are a treatment variable. I propose a novel framework called the Budget Minimization problem in which a researcher chooses the level of incentives that allows her to detect a predicted treatment effect while minimizing her expected budget. The Budget Minimization problem builds upon the power analysis and structural ...