Back to History

Fields Changed

Registration

Field Before After
Trial Title Financial Scarcity and Economic Decision-Making Financial Scarcity and Economic Decision-Making (V.2)
Abstract We run two independent experiments to test the impact of financial scarcity on economic decision making. In the laboratory study, we exogenously introduce financial scarcity by randomly assigning a high or a low initial endowment to student subjects. In the field experiment, we compared rural residents from relatively rich and poor rural areas to characterize financial scarcity, and utilized priming techniques to induce immediate feelings of scarcity. Furthermore, we examine long-term financial pressure by comparing parents of two boys with parents of two girls in high bribe price regions, where financial scarcity is prevalent. The core hypothesis of this study posits that financial scarcity prompts individuals to prioritize "saving money" over "making money" when faced with conflicting decisions. This fundamental conflict in decision-making can be manifested and empirically tested across various economic games. We run two independent experiments to test the impact of financial scarcity on economic decision making. In the laboratory study, we exogenously introduce financial scarcity by randomly assigning a high or a low initial endowment to student subjects. In the field experiment, we compared rural residents from relatively rich and poor rural areas to characterize financial scarcity from external environment. We capture current pressure by comparing parents with differnet number of children in rural area, and examine long-term financial pressure by comparing parents with two boys to parents with other types of children in high bribe price regions. The core hypothesis of this study posits that financial scarcity prompts individuals to prioritize "saving money" over "making money" when faced with conflicting decisions. This fundamental conflict in decision-making can be manifested and empirically tested across various economic games.
Trial End Date July 31, 2024 December 31, 2024
Last Published December 01, 2023 04:42 AM July 25, 2024 12:00 PM
Intervention (Public) Study 1 (lab experiment) involves the random assignment of participants to either a high or low initial endowment condition. In Study 2 (field experiment), participants are exposed to either financial scarcity priming or no priming, achieved by emphasizing a high bride price. Under the priming condition, subjects respond to questions about bride price and express their concerns regarding their children's future financial needs before making economic decisions. Study 1 (lab experiment) involves the random assignment of participants to either a high or low initial endowment condition. In Study 2 (field experiment), participants are exposed to either financial scarcity priming or no priming, achieved by emphasizing a high bride price. Under the priming condition, subjects respond to questions about bride price and express their concerns regarding their children's future financial needs before making economic decisions.
Intervention End Date July 31, 2024 December 31, 2024
Experimental Design (Public) Study 1 (lab experiment): Student subjects are randomly assigned an endowment of either 1000 or 5000 Experimental Currency Units. Then they perform a series of economic tasks that allow us to measure notably risk and time preference, long-term investment with risk, and decision conflict between making money and saving money. Study 2 (field experiment): We will run a lab-in the-field experiment in areas with high bride price, recruiting rural residents who have unmarried children. We will randomly prime the financial pressure from high bride price and the impact of this pressure on economic decisions in variouseconomic games. These include assessments of risk and time preferences, long-term investment with risk, and decision conflicts between making money and saving money. Study 1 (lab experiment): Student subjects are randomly assigned an endowment of either 1000 or 5000 Experimental Currency Units. Then they perform a series of economic tasks that allow us to measure notably risk and time preference, long-term investment with risk, and decision conflict between making money and saving money. Study 2 (field experiment): We will run a lab-in the-field experiment in areas with high bride price, recruiting rural residents who have unmarried children. We will randomly prime the financial pressure from high bride price and the impact of this pressure on economic decisions in various economic games. These include assessments of risk and time preferences, long-term investment with risk, and decision conflicts between making money and saving money.
Randomization Method In the lab experiment, randomization and assignment to a given condition will be made by the computer program. In the field experiment, subjects will be randomised into the priming or no priming condition by an experimenter's coin flip. The random draw will be made in advance for each subject before we start the inverview. In the lab experiment, randomization and assignment to a given condition will be made by the computer program. In the field experiment, subjects will be randomised into the priming or no priming condition by an experimenter's coin flip. The random draw will be made in advance for each subject before we start the inverview.
Sample size (or number of clusters) by treatment arms Study 1 (lab experiment): 90 per each treatment (high versus low endowment) Study 2 (field experiment): 50 control in low bride price area (also rich area), 50 parents of two boys in the no priming condition; 50 parents of two boys in the priming condition; 50 parents of two girls in the no priming condition; 50 parents of two girls in the priming condition; 50 parents of other conditions (not parents of two girls or two boys) in the no priming condition. 50 parents of other conditions (not parents of two girls or two boys) in the priming condition. Study 1 (lab experiment): 90 per each treatment (high versus low endowment) Study 2 (field experiment): 50 parents with two boys in high pressure area, 50 parents with two boys in low pressure area; 50 parents with two girls or one gril in high pressure area; 50 parents with two girls or one gril in low pressure area; 50 parents with one boy and one girl in high pressure area. 50 parents with one boy and one girl in low pressure area. 25 parents with one boy in high pressure area and 25 parents with one boy in low pressure area. Note: We change the sample distribution plan of the field experiment in this version for two main reasons: Firstly, we have collected 235 valid sample at this time point, which indicates that it is almost impossible to find enough parents with two girls as we initially planned. Because there is a general preference for boys in the rural areas we studied, the parents would like to have a third child if they have had two girls. Therefore, we shift to comparing parents with two boys and parents with other types of children. Secondly, our initial planned sample distribution rely on the priming intervention, while we find the priming effect is trivial but the difference between high pressure versus low pressure areas is highly significant. So we need to collect more data from low pressure areas than initially planned. This change in the sample distribution does not alter our research question; it is an optimization and improvement of the design as the study progresses, which can better meet the needs of our research question.
Intervention (Hidden) We compare participants from high pressure areas versus low pressure areas, defined by bride price and average household income.
Back to top