Is “real” effort more real?

Abstract A growing number of studies use “real” effort designs for laboratory experiments where subjects complete an actual task to exert effort rather than using a stylized effort design where subjects simply choose an effort level from a predefined set. The commonly argued reason for real effort is that it makes the results more generalizable and field relevant. We investigate the nature of modeling effort provision by first trying to provide a clear theoretical understanding of the nature of effort costs. We then empirically examine claims about the differences between real effort and stylized effort. A key to our examination is ensuring that we compare the two modes of effort provision keeping effort costs constant, which is a point overlooked in many past examinations. In our data, when controlling for effort costs, we find no differences in behavior between real and stylized effort. Given the importance of effort costs and the lack of a generally accepted way to include them in real effort designs, we provide a simple add-on that any researcher can use with their real effort experiments to incorporate a theoretically appropriate and controlled cost of effort even in a real effort setting. We also discuss ways to better approach modeling effort costs in experiments, whether one is conducting real or stylized designs, to improve inference on research questions.