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    Exploring the meaning of significance in experimental economics

    Access Status
    Fulltext not available
    Authors
    Zhang, Lyla
    Ortmann, A.
    Date
    2013
    Type
    Working Paper
    
    Metadata
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    Citation
    Zhang, L. and Ortmann, A. 2013. Exploring the meaning of significance in experimental economics, Australian School of Business Research Paper No. 2013 ECON 32, University of New South Wales, Department of Economics & Property.
    School
    Department of Economics & Property
    URI
    http://hdl.handle.net/20.500.11937/62344
    Collection
    • Curtin Research Publications
    Abstract

    Null Hypothesis Significance Testing has been widely used in the experimental economics literature. Typically, attention is restricted to type-I-errors. We demonstrate that not taking type-II errors into account is problematic. We also provide evidence, for one prominent area in experimental economics (dictator game experiments), that most studies are severely underpowered, suggesting that their findings are questionable. We then illustrate with several examples how poor (no) power planning can lead to questionable results.

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