Loss Sensitivity, Perceived Inequality, and Financial Participation

Last registered on May 19, 2026
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Pre-Trial

Trial Information

General Information

Title
Loss Sensitivity, Perceived Inequality, and Financial Participation
RCT ID
AEARCTR-0011992
Initial registration date
August 25, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
September 04, 2023, 6:02 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
May 19, 2026, 1:31 AM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

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Primary Investigator

Name
Gursmeep (Rubina) Hundal
Affiliation
University of Chicago
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Other Primary Investigator(s)

PI Name
Emily Zhang
PI Affiliation
University of Chicago
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Additional Trial Information

Status
On going
Start date
2023-08-26
End date
2026-12-31
Keywords
Behavior, Finance & Microfinance, Gender, Lab
Additional Keywords
Behavioral economics, Loss aversion, Perceptions of inequality, Financial inclusion, Prospect theory, Investment behavior, Financial socialization
JEL code(s)
D81, G41, G51, J16
Secondary IDs
Prior work
This trial is based on or builds upon one or more prior RCTs.
Abstract
This study examines how individual differences in loss sensitivity relate to perceptions of wealth and behavior in incentivized investment decisions. The project uses a two-wave online experiment with US adults recruited through Prolific. We measure individual gain and loss utility parameters using a preference elicitation method following Abdellaoui et al. (2016), along with incentivized investment choices. We then re-invite a subset of participants and use an allocation task with randomized framing, alongside survey modules on perceptions of wealth inequality, perceived financial vulnerability, attitudes toward investing, financial socialization, and financial delegation. The two-wave structure enables within-person analysis linking individual-level preference parameters to subsequent perceptions and behavior. This experimental work is intended to complement descriptive evidence from cross-country surveys on financial inclusion.
External Link(s)

Registration Citation

Citation
Hundal, Gursmeep (Rubina) and Emily Zhang. 2026. "Loss Sensitivity, Perceived Inequality, and Financial Participation." AEA RCT Registry. May 19. https://doi.org/10.1257/rct.11992-2.0
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Experimental Details

Interventions

Intervention(s)
Participants complete incentivized investment and allocation tasks alongside survey measures of financial perceptions and attitudes.
Intervention Start Date
2023-08-26
Intervention End Date
2026-06-30

Primary Outcomes

Primary Outcomes (end points)
Individual-level utility parameters for gains and losses, including a loss-aversion measure. Allocation behavior in incentivized investment and allocation tasks. Within-person associations between Wave 1 preference parameters and Wave 2 measures of perceptions, attitudes, and allocation behavior.
Primary Outcomes (explanation)
Wave 1 primary outcomes are constructed from individual-level utility elicitation (gain and loss utility curves; ratio-based loss aversion measure) and from choices in the incentivized financial choice list. Wave 2 primary outcomes include allocation to the risky lottery in the framed allocation task and survey-based measures of perceived inequality, perceived vulnerability, attitudes, and socialization. Within-person analyses examine associations between Wave 1 preference parameters and Wave 2 measures.

Secondary Outcomes

Secondary Outcomes (end points)
Heterogeneity in primary outcomes across participant subgroups defined by demographics and self-reported financial background.
Secondary Outcomes (explanation)
Secondary analyses will examine whether relationships among primary outcomes vary systematically across participant characteristics. These analyses are exploratory.

Experimental Design

Experimental Design
A two-wave online experiment. Each wave includes randomized assignment to pre-task or task-frame conditions, combined with individual-level measurement of preferences, perceptions, and behavior.
Experimental Design Details
Not available
Randomization Method
Electronically by Qualtrics
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
N/A
Sample size: planned number of observations
Wave 1: 500 (completed). Wave 2: approximately 100 (target, drawn from Wave 1 participants via Prolific re-contact).
Sample size (or number of clusters) by treatment arms
Wave 1: approximately 167 per arm across three arms (completed). Wave 2: approximately 50 per arm across two arms (gain frame, loss frame).
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Wave 2 sample size is set by the pool of Wave 1 participants available for re-contact rather than by ex ante power calculations. Wave 2 analyses are accordingly best interpreted as exploratory with respect to within-person associations between Wave 1 preference parameters and Wave 2 outcomes.
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Chicago
IRB Approval Date
2023-08-23
IRB Approval Number
IRB23-0826
Analysis Plan