Social and Behavioral Sciences Commons^™

On Using Interval Response Data In Experimental Economics, James Mcdonald, Olga B. Stoddard, Daniel Walton

Faculty Publications

Many empirical applications in the experimental economics literature involve interval response data. Various methods have been considered to treat this type of data. One approach assumes that the data correspond to the interval midpoint and then utilizes ordinary least squares to estimate the model. Another approach is to use maximum likelihood estimation, assuming that the underlying variable of interest is normally distributed. In the case of distributional misspecification, these estimation approaches can yield inconsistent estimators. In this paper, we explore a method that can help reduce the misspecification problem by assuming a distribution that can model a wide variety of …