The Impact of Managerial Role Awareness on Higher-Order Risk Preferences

Last registered on January 27, 2025
View Trial History

Pre-Trial

Trial Information

General Information

Title
The Impact of Managerial Role Awareness on Higher-Order Risk Preferences
RCT ID
AEARCTR-0015261
Initial registration date
January 27, 2025

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
January 27, 2025, 10:29 AM EST

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

Locations

Country
Japan
Region

Primary Investigator

Name
Tetsuya Kawamura
Affiliation
Tezukayama University
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Junichi Yamanoi
PI Affiliation
Waseda University
Contact Investigator
PI Name
Hajime Katayama
PI Affiliation
Waseda University
Contact Investigator
PI Name
Yusuke Osaki
PI Affiliation
Waseda University
Contact Investigator
PI Name
Shotaro Shiba
PI Affiliation
Toyo University
Contact Investigator

Additional Trial Information

Status
In development
Start date
2025-01-31
End date
2025-02-21
Keywords
Behavior
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study measures risk preferences, including higher-order risk preferences (prudence and temperance), among Japanese small and medium-sized enterprise (SME) managers through a survey. We examine how the role of being a manager influences decision-making under uncertainty. Participants are randomly assigned to one of four groups, and their risk preferences are measured under specific conditions. The four groups are defined by two factors: whether participants make lottery choices in the role of an individual or a manager, and whether the monetary stakes of the lottery are set at a baseline value or scaled up by a factor of ten.
External Link(s)

Registration Citation

Citation
Katayama, Hajime et al. 2025. "The Impact of Managerial Role Awareness on Higher-Order Risk Preferences." AEA RCT Registry. January 27. https://doi.org/10.1257/rct.15261-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
There are two types of interventions: priming, which involves raising awareness of the role as a manager, and the stake size of lottery-based tasks designed to measure risk and higher-order risk preferences. In the experiment, participants' risk preferences, including those related to higher-order risks, are assessed through a lottery choice task. During the task, participants make decisions as one of two roles: either prompted to make choices as individuals or as managers. Additionally, two types of stake sizes are employed: one set at a baseline monetary value and the other with all lottery outcomes scaled up by a factor of ten.
Intervention Start Date
2025-01-31
Intervention End Date
2025-02-21

Primary Outcomes

Primary Outcomes (end points)
The level of risk attitudes, prudence, and temperance (The number of risk-averse, prudent, and temperate lotteries chosen)
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
A survey targeting about 3,000 managers of SMEs in Japan was conducted to measure risk and higher-order risk preferences. Respondents were randomly divided into four groups based on two types of interventions: role and stake size.
Experimental Design Details
A survey targeting about 3,000 managers of SMEs in Japan was conducted to measure risk and higher-order risk preferences. Respondents were randomly divided into four groups based on two types of interventions: role and stake size.

To give a role, participants were instructed to make decisions during the lottery choice task (used to assess risk and higher-order risk preferences) either as individuals or as managers. Regarding stake size, the monetary rewards of the lottery task were set at two levels: a baseline amount and a tenfold increase of that amount. Participants were randomly assigned to one of four groups, stratified based on their companies' sales revenue and number of employees:

1. Role: Individual; Stake Size: Small
2. Role: Individual; Stake Size: Large
3. Role: Manager; Stake Size: Small
4. Role: Manager; Stake Size: Large

To measure preferences, we adopt a method used in Noussair et al. (2014). Participants make several lottery choices that assess risk preferences, prudence, and temperance, with each choice used to define a corresponding preference measure.

Noussair, C. N., Trautmann, S. T., & Van de Kuilen, G. (2014). Higher order risk attitudes, demographics, and financial decisions. Review of Economic Studies, 81(1), 325-355.
Randomization Method
Randomization done by a survey company with keeping the same distribution on the sales and number of employees of their companies for each group.
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
The treatments are not clustered.
Sample size: planned number of observations
600 respondents (We will distribute 3,000 questionnaires and estimate a return rate of 20%.)
Sample size (or number of clusters) by treatment arms
150
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Ethics Review Committee on Research with Human Subjects of WasedaUniversity
IRB Approval Date
2023-11-22
IRB Approval Number
2023-355
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials