On the Efficiency of Behavioural Public Economics Policies: an Experimental Study

Abstract

Behavioral economics develops as an area with inferences and conclusions to help policy makers in public economics policies. In this study, the effectiveness of public policies formed by using the default choice manipulation and loss aversion concepts are examined through laboratory experiments. In the experiments, participants play a public goods game in groups of 4. In the first experiment, the effect of compulsory staying in a default option on participants’ decisions has been evaluated by comparing the pre-and post-treatment decisions. In the second experiment, the result screens of the participants after each public goods game rounds were framed as loss and gain. Waiting time and loss framing found to have no effect on decisions.