Getting a Grip on Loss Aversion

Last registered on August 21, 2018

Pre-Trial

Trial Information

General Information

Title
Getting a Grip on Loss Aversion
RCT ID
AEARCTR-0003236
Initial registration date
August 16, 2018
Last updated
August 21, 2018, 12:22 AM EDT

Locations

Region

Primary Investigator

Affiliation
The University of Queensland

Other Primary Investigator(s)

PI Affiliation
University of California, San Diego
PI Affiliation
University of California, San Diego

Additional Trial Information

Status
On going
Start date
2018-08-14
End date
2018-09-30
Secondary IDs
Abstract
An implication of loss aversion is that contracts written to reward agents with gains from effort will not produce the same effort as contracts that are otherwise equivalent but exact losses from the lack of effort. Given that a “losses contract” increases average effort, those who are loss averse should drive this increase. We run a laboratory experiment in which subjects are incentivized to complete a real-effort task. Subjects are treated with either a "gains" or "losses" frame. Using an independent measure of loss aversion, we focus on how loss averse subjects are differentially affected by this framing.
External Link(s)

Registration Citation

Citation
, , Zachary Breig and Charles Sprenger. 2018. "Getting a Grip on Loss Aversion." AEA RCT Registry. August 21. https://doi.org/10.1257/rct.3236-1.0
Former Citation
, et al. 2018. "Getting a Grip on Loss Aversion." AEA RCT Registry. August 21. https://www.socialscienceregistry.org/trials/3236/history/33288
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2018-08-14
Intervention End Date
2018-09-30

Primary Outcomes

Primary Outcomes (end points)
The key variables of interest are whether the subject successfully reached 100 successful seconds (half of the total possible amount) and the total number of successful seconds.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Subjects will be incentivized to squeeze a hand dynamometer for 200 seconds. Subjects will be randomized into seeing either the "losses" interface or the "gains" interface. Subjects will also complete the Loss Aversion Elicitation Task.
Experimental Design Details
Randomization Method
Subjects will be randomized by a computer in an office.
Randomization Unit
Subjects will be randomized at the individual level.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
There will be roughly 200 subjects.
Sample size: planned number of observations
There will be roughly 200 subjects.
Sample size (or number of clusters) by treatment arms
There will be roughly 100 subjects treated with the "gains" frame and 100 subjects treated with the "losses" frame.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
UCSD Human Research Protections Program
IRB Approval Date
2018-06-07
IRB Approval Number
180233
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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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