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	<title>Comments on: Randomised Business Trials</title>
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		<title>By: Club Troppo &#187; Missing Link Daily</title>
		<link>http://economics.com.au/?p=1581&#038;cpage=1#comment-131001</link>
		<dc:creator>Club Troppo &#187; Missing Link Daily</dc:creator>
		<pubDate>Mon, 21 Jul 2008 23:00:40 +0000</pubDate>
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		<description>[...] Joshua Gans joins Andrew Leigh in the Quest for the Holy Randomised Trial. [...]</description>
		<content:encoded><![CDATA[<p>[...] Joshua Gans joins Andrew Leigh in the Quest for the Holy Randomised Trial. [...]</p>
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		<title>By: Kevin Cox</title>
		<link>http://economics.com.au/?p=1581&#038;cpage=1#comment-130314</link>
		<dc:creator>Kevin Cox</dc:creator>
		<pubDate>Fri, 20 Jun 2008 01:19:02 +0000</pubDate>
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		<description>Randomised trials are a nice idea for situations like medical experiments, finding a better breed of lupin. They are not necessary when it comes to information systems such as economic systems because as with the reported trial above if we collect appropriate information then the trial becomes an experiment. We can get the results hypothesise on why the results are the way they are and then change the system to see if our hypothesis is right or not. 

The problem with randomised trials is a practical one. Ok so you &quot;prove&quot; that there may be a causal effect but now you have to convince people to let you implement the change. By the time you get someone to implement your changes the world is now a different place and it is likely that what you have discovered is bypassed.

With incremental experimentation or trials you keep learning and you do not have to convince people because they see it happening. That is, the development of the revised improved system is quicker and more certain and it will go in directions that you had no idea of when you started.

Design economic systems to be learning experimental systems is likely to be a more productive approach than randomised trials. 

I would suggest business keeps doing things the way they are and not get into randomised trials. Not because randomised trials are wrong or a bad idea just that they are less effective than a dynamic learning system which is what experimental trials are all about.</description>
		<content:encoded><![CDATA[<p>Randomised trials are a nice idea for situations like medical experiments, finding a better breed of lupin. They are not necessary when it comes to information systems such as economic systems because as with the reported trial above if we collect appropriate information then the trial becomes an experiment. We can get the results hypothesise on why the results are the way they are and then change the system to see if our hypothesis is right or not. </p>
<p>The problem with randomised trials is a practical one. Ok so you &#8220;prove&#8221; that there may be a causal effect but now you have to convince people to let you implement the change. By the time you get someone to implement your changes the world is now a different place and it is likely that what you have discovered is bypassed.</p>
<p>With incremental experimentation or trials you keep learning and you do not have to convince people because they see it happening. That is, the development of the revised improved system is quicker and more certain and it will go in directions that you had no idea of when you started.</p>
<p>Design economic systems to be learning experimental systems is likely to be a more productive approach than randomised trials. </p>
<p>I would suggest business keeps doing things the way they are and not get into randomised trials. Not because randomised trials are wrong or a bad idea just that they are less effective than a dynamic learning system which is what experimental trials are all about.</p>
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