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Field
Experimental Design (Public)
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Before
The proposed experiment last approximately 70 minutes, and it is both a within-subjects and between-subjects design aimed at testing the axioms provided in the study. Subjects will face a total of 28 tasks. Each task requires subjects to make some decisions, and each decision always ask subjects to make a choice between two monetary lotteries. These tasks are designed according to the new axiomatic foundation provided in this project. Subjects complete every task in a laptop provided by EconLab.
In decisions of each task, subjects will be asked to choose between option A and B. In decisions of task 1-6, each option has two possible payments with equal probability. In decisions of task 6-12, each option has four possible payments with equal probability. In decisions of task 12-24, each option has identical possible payments which has different probabilities. Subjects make their decision by clicking ratio buttons shown on the screen.
Data Collection and Analysis:
The experiment is conducted using OTree (Chen et al. 2016), which records subjects’ choices once they make their decision. To protect subjects’ information, upon subjects’ arrival at EconLab, arbitrary numbers will be assigned to them. Through this study, we link this arbitrary participate number with their choices in each task. For instance, if a subject is assigned with number 2, we identify the corresponding choices as decisions of subject 2. Therefore, no private/identifiable information is recorded in this experiment. This study uses these decisions to test the validity of correlation-sensitive preferences.
Compensation Design:
Subjects will be compensated for their participation in two ways. First, all subjects will receive a participation payment of $5. Second, subjects, will be additionally paid their earnings from one decision in one of their tasks. This provides an additional opportunity to earn money. Depending on subject choices, the chosen decision may involve risk. If subject’s chosen decision involves risk, she will be paid according to a randomly picked ball that marked the corresponding event from an urn. Their maximum payments from tasks could be up to $30. Depending on the task that gets chosen for payment, the lowest expected additional payment for a subject who chooses according to expected value is $7.5. The highest expected payment for a subject who chooses according to expected value is $22. Subjects who are very risk averse can ensure they will receive additional earnings with at least 75% chance.
No further information, including questionaries and surveys, will be collected. Subjects will not be audiotaped or videotaped for this study.
All data collected will be used in this study only.
No preliminary studies have been conducted.
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After
The proposed experiment last approximately 27 minutes, and it is both a within-subjects and between-subjects design aimed at testing the axioms provided in the study. Subjects will face a total of 16 tasks. Each task requires subjects to make some decisions, and each decision always ask subjects to make a choice between two monetary lotteries. These tasks are designed according to the new axiomatic foundation provided in this project.
In decisions of each task, subjects will be asked to choose between option A and B. Subjects make their decision by clicking ratio buttons shown on the screen.
Data Collection and Analysis:
The experiment is conducted using OTree (Chen et al. 2016), which records subjects’ choices once they make their decision.
Compensation Design:
Subjects will be compensated for their participation in two ways. First, all subjects will receive a participation payment of $4.5. Second, subjects will have 25% chance to be additionally paid their earnings from one decision in one of their tasks. This provides an additional opportunity to earn money.
No further information, including questionaries and surveys, will be collected. Subjects will not be audiotaped or videotaped for this study.
All data collected will be used in this study only.
No preliminary studies have been conducted.
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Field
Sample size (or number of clusters) by treatment arms
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Before
For within-subject analysis, 200 subjects.
For between-subject analysis: 100 subjects control, 100 subjects with probability and/or correlation manipulations.
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After
For within-subject analysis, 800 subjects.
For between-subject analysis: 400 subjects control, 400 subjects with payments manipulations.
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