Beliefs and Information in Gotham - Assessing the Popularity of Pricing through Learning via Experience (BIG APPLE)

Last registered on December 12, 2024

Pre-Trial

Trial Information

General Information

Title
Beliefs and Information in Gotham - Assessing the Popularity of Pricing through Learning via Experience (BIG APPLE)
RCT ID
AEARCTR-0014992
Initial registration date
December 08, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
December 12, 2024, 11:24 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
December 12, 2024, 12:06 PM EST

Last updated is the most recent time when changes to the trial's registration were published.

Locations

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Primary Investigator

Affiliation
Georgia State University

Other Primary Investigator(s)

PI Affiliation
University of Alabama
PI Affiliation
University of Cologne
PI Affiliation
Ludwig Maximilian University of Munich
PI Affiliation
University of Wyoming

Additional Trial Information

Status
In development
Start date
2024-12-09
End date
2025-06-09
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This project aims at combining policy evaluation of the New York congestion charge with the causal analysis of public support. The congestion charge in New York provides a unique opportunity to examine people's understanding of and support for congestion charges both before and after the implementation of the policy, compared to a control group. That is, it allows at the same time learning about the policy (policy evaluation) and learning about how voters learn about the policy and potentially revise their beliefs accordingly (causal analysis of public support). Policymakers are likely to care about both items and to be more likely to experiment with ex-ante unpopular policies in presence of not only more evidence about their effectiveness, but also about their potential ex-post popularity. The New York congestion charge also provides the ideal framework to examine the role of information provision as a substitute, and complement, to experience and to understand mechanisms explaining potential changes in public support.
External Link(s)

Registration Citation

Citation
Carattini, Stefano et al. 2024. "Beliefs and Information in Gotham - Assessing the Popularity of Pricing through Learning via Experience (BIG APPLE)." AEA RCT Registry. December 12. https://doi.org/10.1257/rct.14992-1.1
Experimental Details

Interventions

Intervention(s)
This project includes two interventions. One is the implementation of the New York congestion charge by policymakers, outside of the researchers’ control (indeed this project was postponed by about six months when the congestion charge was paused in June 2024). This external intervention is leveraged for policy evaluation purposes and for the causal analysis of public support. Outcomes for policy evaluation (among others) and the causal analysis of public support are examined with survey data. At baseline, an informational treatment is allocated at random. This is the second intervention, about which more details are provided in what follows and in the pre-analysis plan.
Intervention Start Date
2024-12-09
Intervention End Date
2025-06-09

Primary Outcomes

Primary Outcomes (end points)
Policy evaluation: travel speeds, travel behavior, locational choices, (severe) accidents, and local air pollution.

Causal analysis of public support (and information as complement or substitute to experience): public support (including ideal price levels); preferences over use of revenues; beliefs about policy impacts.
Primary Outcomes (explanation)
As detailed in the pre-analysis plan (including additional primary outcomes).

Secondary Outcomes

Secondary Outcomes (end points)
As detailed in the pre-analysis plan.
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Many policies that experts recommend are not implemented by policymakers, because of their (ex-ante) unpopularity. Congestion charges are a case in point. This project aims at combining policy evaluation and the causal analysis of public support applied to the New York congestion charge and inform policymakers about two key items: how the congestion charge works (policy evaluation) and how voters learn about how it works and, as a result, possibly reconsider their stance vis-à-vis the policy (causal analysis of public support).

With policy evaluation, our objective is to contribute to a relatively limited strand of research that examines the impact of congestion charges on key outcomes such as congestion, accidents, and local air pollution. In line with the existing literature, we use administrative data for policy evaluation purposes. However, we also use survey data, which give us much more granular information on a variety of possible margins of adjustment in commuting behavior following the implementation of the congestion charge. Hence, our objective is to provide extensive evidence on the functioning of the New York congestion charge, a policy that affects the largest metropolitan area in the United States and one of the largest cities in the world.

With the causal analysis of public support, our objective is to provide evidence on how beliefs about and public support for congestion charges may evolve with direct experience of the policy.

This project also tests the extent to which information may be a substitute for experience. Information may also be a complement to experience, to the extent that the effects of a policy are not entirely salient to voters (with respect to the counterfactual). Hence, we are also interested in the extent to which information (provided at baseline) may be a complement to information.

To test the role of substitutability or complementarity of information with respect to experience, the baseline survey includes a randomized informational treatment, which describes the experience of frontrunner cities with congestion charges.

The survey covers respondents in the New York metropolitan area, respondents in four other metropolitan areas in the United States which currently do not have a congestion charge and have no immediate plans to introduce one, as well as respondents in the Greater London and in Singapore, both of which already have a congestion charge and so whose residents’ beliefs about congestion charges may be less affected by New York's experience with congestion charges. That is, the survey combines untreated control metropolitan areas and already-treated control metropolitan areas.

In short, the experimental design is as follows. Respondents are surveyed twice through two survey waves, to form a survey panel. At baseline, half of the respondents across metropolitan areas are exposed to the informational treatment. Between waves, respondents in New York's metropolitan area are exposed to the New York congestion charge. Hence, part of the sample is exposed to information only, part of the sample to experience only, part of the sample to both information and experience, and part of the sample to neither.
Experimental Design Details
Not available
Randomization Method
Randomization for the informational treatment done by the professional survey company tasked with administering the survey.
Randomization Unit
Treatment assignment for the informational treatment is at the level of the individual. Individuals in both the treated metropolitan area and in control metropolitan areas will be assigned to either the informational treatment or the control condition. Treatment assignment for experience (exposure to the congestion charge) is at the metropolitan area level, with the New York metropolitan area being treated.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
7 metropolitan areas are included in the survey.
Sample size: planned number of observations
The survey is designed to have 12,000 respondents per wave (the pre-analysis plan discusses expected attrition rates for the survey panel and corresponding implications for power).
Sample size (or number of clusters) by treatment arms
Half of the 12,000 respondents at baseline are exposed, across metropolitan areas, to the informational treatment. Only residents in the New York metropolitan area are exposed to the congestion charge.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
Georgia State University Institutional Review Board
IRB Approval Date
2024-05-29
IRB Approval Number
380073