ABSTRACT
The experimental method by Niederle and Vesterlund is an exemplary application, which is used to test the hypothesis that men have a stronger preference for competition than women. The authors design a clever and rigorous experiment that not only sheds light on the question of interest, but also rules out plausible alternative hypotheses. They find that men do prefer competition more than women do, offering a new explanation for observed gender differences in labor market outcomes. Their experimental design provides an easily implemented measure of competitiveness, allowing scholars and practitioners to explore the role of competitive preferences beyond the lab. Their work has increased the credibility and appeal of lab studies to researchers outside experimental economics. Their research has inspired an explosion of work on gender differences in beliefs and preferences, and has led to a variety of policy recommendations, including those that involve modifying competitive structures where they do not serve an essential role. Among the qualities that contribute to making an experiment important is that it should use an appropriately crafted experimental design to ask and answer a key question – a question whose answer may unlock a significant puzzle – in a convincing, replicable, and generalizable way. Niederle and Vesterlund (NV) does each of these things.
