Estimating the Demand for Entrepreneurship Programs: Experimental Evidence from Jamaica.
Last registered on May 20, 2019

Pre-Trial

Trial Information
General Information
Title
Estimating the Demand for Entrepreneurship Programs: Experimental Evidence from Jamaica.
RCT ID
AEARCTR-0002130
Initial registration date
March 24, 2017
Last updated
May 20, 2019 6:08 AM EDT
Location(s)

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Primary Investigator
Affiliation
BOCCONI UNIVERSITY
Other Primary Investigator(s)
PI Affiliation
Inter-American Investment Corporation
PI Affiliation
Development Research Group, World Bank
Additional Trial Information
Status
In development
Start date
2017-04-15
End date
2019-08-01
Secondary IDs
Abstract
The goal of this project is to understand whether it is possible and desirable to charge a positive price for business-training programs. We elicit willingness to pay for a course for entrepreneurs in Jamaica. First, we estimate the demand schedule for the program. Second, we study whether willingness to pay can act as a screening device to select those entrepreneurs who would benefit the most from participation in training programs. Third, we test whether there is a sunk-cost effect by which those who pay a higher price for the program exercise more effort (attend the training more regularly) and achieve higher returns. This project is relevant to understand whether we can increase the effect of business-training programs by targeting, and whether providers can achieve financial sustainability by charging a positive price without screening out a large share of entrepreneurs who might participate only if the program is offered for free.
External Link(s)
Registration Citation
Citation
Maffioli, Alessandro, David McKenzie and DIEGO UBFAL. 2019. "Estimating the Demand for Entrepreneurship Programs: Experimental Evidence from Jamaica.." AEA RCT Registry. May 20. https://www.socialscienceregistry.org/trials/2130/history/46757
Experimental Details
Interventions
Intervention(s)
Our intervention is based on two parts: (i) experiments with entrepreneurs to elicit their willingness to pay for an entrepreneurship program, and (ii) implementation of the training for the entrepreneurs with WTP higher than the randomly drawn price.
Intervention Start Date
2017-11-01
Intervention End Date
2018-07-31
Primary Outcomes
Primary Outcomes (end points)
Willingness to Pay, Attendance to the Course, Business Practices, Soft Skills and Business Outcomes.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
The design is based on eliciting willingness to pay for the training program using multiple price lists, similar to a discrete version of the Becker-DeGroot-Marschak mechanism (BDM). Participants in our study will be given information about the program in a demonstration class. We will then ask them whether they are willing to pay $X for the entrepreneurship program, where X takes several different values (X=0 in one of the choices). Respondents will be told that one of their choices will be randomly chosen and that the choices are binding. Respondent (as long as they are expected utility maximizers) will have an incentive to reveal the true WTP.
Experimental Design Details
Not available
Randomization Method
To be decided based on piloting.
Randomization Unit
Individual
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
1000 entrepreneurs
Sample size: planned number of observations
1000 entrepreneurs
Sample size (or number of clusters) by treatment arms
The sample size for each treatment arm (each randomly allocated price) will be designed base on a calibration using baseline data.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
Ethics Committee of Bocconi University
IRB Approval Date
2017-02-27
IRB Approval Number
Not available