Understanding Social Impact Bonds and Their Alternatives: An Experimental Investigation

Abstract

, and WissenschaftsZentrum Berlin for excellent questions and suggestions. We are particularly grateful to Chris Bidner for an excellent discussion of an earlier version of the present manuscript.

On Uneven Expected Earnings in the Lab

“…Due to the calibrations employed in Wong et al (2013), we faced the three problems associated with uneven earnings. Mining the opinions of respondents from the ESA discussion list, the literature, and drawing on our own experience, we discuss five responses experimenters can use to mitigate the three problems (Table 3.1) 4 .…”

“…Where such rotation is feasible and/or desirable, this strategy offers an easy way out. It was neither feasible nor desirable in Wong et al (2013) due to the complexity of the experiment, and thus the time it would take to understand the experimental environment..…”

“…We draw upon our experience in Wong et al (2013) to compare Responses 2 and 3. In the experiment, principals (i.e.…”

“…In Wong, Ortmann, Motta & Zhang (2013), our parameters, which we had tried to calibrate from real-world data, left principals with significantly higher expected earnings than agents.…”