Ambient-Based Policy Instruments: The Role of Recommendations and Presentation

We explore the effects of recommended play and the presentation of payoff information on behavior in an ambient-based policy instrument experiment. Specifically, we test the effects of recommended play (via a description of marginal decision making) and a payoff table on the behavior of individuals facing an ambient-based policy instrument. We find that recommended play and the presentation of a payoff table increases the use of the socially optimal strategy, thereby increasing efficiency. These results suggest that providing decision makers with a richer description of the decision making environment significantly reduces decision error, significantly improving the efficiency of ambient-based policy instruments.


Issue Date:
2010-06-07T17:53:00Z
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/90832
Published in:
Agricultural and Resource Economics Review, Volume 39, Number 2
Page range:
262-274
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-25

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