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Testing a policy intervention in the lab: differences between students and non-students in switching bank accounts

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Listed:
  • Proestakis, Antonios
  • Marandola, Ginevra
  • Lourenço, Joana S.
  • van Bavel, René

Abstract

The reliance on student samples has long been a subject of debate in experimental approaches to studying behaviour. We contribute to this discussion by looking at differences in financial behaviour between a student and a non-student sample in three sets of lab experiments conducted in Spain, Germany and Poland (n=857). Participants from both samples switched more often and made better financial decisions after they received a message encouraging them to switch financial service providers. While the size of the effect on switching frequency was comparable between the two samples, the effect on switching quality was significantly stronger on non-students. Further analysis suggests this is due to a better performance of students before the prompt leaving less room for improvement by the reminder. Results suggest that experimental evidence derived from students should be generalized with caution.

Suggested Citation

  • Proestakis, Antonios & Marandola, Ginevra & Lourenço, Joana S. & van Bavel, René, 2024. "Testing a policy intervention in the lab: differences between students and non-students in switching bank accounts," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).
    • Handle: RePEc:eee:soceco:v:111:y:2024:i:c:s2214804324000582
    DOI: 10.1016/j.socec.2024.102220
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    More about this item

    Keywords

    Economic experiment; Student sample; Switching; Financial behaviour; External validity; Policy intervention;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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