The Cutoff

Another RCT Game

Briefing note — to the Minister

Minister — parliament has approved a grant of 5 kroner per resident, payable to whole towns. Which towns is yours to decide, with one constraint: the law must be a line. Parliament will enact a single income threshold; every town in the country with average income below it receives the grant, every town above it does not.

The bureau's economists believe the grant's effect depends on how poor a town is — how, exactly, is disputed. Somewhere a line does the most good. Your task is to find it.

You may run two pilots before proposing the national threshold: first in the country's inland province, then on its coast (six towns each). For each pilot you choose which towns to treat, at 5 kr per resident, from your pilot purse of 300 thousand kroner. Each pilot town also requires a bureau field office: 10 thousand kroner, regardless of size. Your pilots are not bound by the line — parliament’s law will be, but you may treat any towns you can afford. The statistical bureau will report each treated town's change in average income; untreated towns report nothing.

After your two pilots, parliament will ask you for the final income threshold to be enshrined in law. The grant will be given to every town where average income lies below your chosen threshold. Towns above it will receive nothing.

The posting

In which type of country do you want to serve as Minister?