False Positives and Transparency
- American Economic Journal: Microeconomics (Forthcoming)
I develop a theoretical model of costly information acquisition in
order to evaluate transparency requirements in empirical research.
A sender chooses an experiment characterized by multiple dimensions,
while a receiver observes the experiment’s outcome (though
not necessarily all dimensions). I show that the receiver may prefer
to keep dimensions hidden, even those contributing to bias,
despite preferring more informative experiments. This can occur
if the perception of bias is lessened when the sender compensates
along a dimension that is observed. I elucidate how complementarity
between dimensions underlies this result.
Forthcoming Article Downloads