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The role of salience and information on agent-s preferences: evidence from a quasi-natural experiment in Portugal
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Resumo(s)
We perform a randomized control trial to evaluate the role of salience and information on
individuals’ preferences. Relying on a quasi-natural experiment, we ask individuals to
evaluate two policies recently implemented by the Portuguese Government, both targeted
at reducing fuel prices: a cash grant (more salient) and a tax reduction (less salient). We
use a random treatment that provides information about the amount of money each surveyed household is saving through each policy. We do not find higher support for the more
salient policy. However, we show that the treatment is highly significant in shifting individuals’ preferences towards rational preferences. This result is important for policy makers and calls for clearer and more targeted communication on policy implications
Descrição
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Salience Information Behavior economics Quasi-natural experiment Randomized control trial.