Back to History Current Version

Easy Money, Cheap Talk, or Peeling Spuds

Last registered on April 29, 2019
View Trial History

Pre-Trial

Trial Information

General Information

Title
Easy Money, Cheap Talk, or Peeling Spuds
RCT ID
AEARCTR-0004149
Initial registration date
April 28, 2019

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
April 29, 2019, 11:00 PM EDT

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

Locations

Country
Korea (Republic of)
Region
Sogang University

Primary Investigator

Name
Hans Hvide
Affiliation
UiB
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Jae Ho Lee
PI Affiliation
University of Aberdeen
Contact Investigator

Additional Trial Information

Status
On going
Start date
2017-02-05
End date
2019-06-30
Keywords
Finance & Microfinance
Additional Keywords
disposition effect, house money, mental accounting, prospect theory, risk taking, windfall gain.
JEL code(s)
C91, D14, E21.
Secondary IDs
Abstract
Economic theory assumes that investment choices do not depend on the source of the budget. We test this assumption in the lab. In the experiments, we divide participants into two groups: those that obtain an endowment through a windfall and those that obtain the same amount through completing a physical effort task (the ”hard-earned” group). In a previous treatment, we have showed that that individuals in the hard-earned group make less risky and more patient choices than individuals in the windfall group. In the current experiment, we wish to expose the control group to a "settling in" period, so that the control and treated group spend approximately the same amount of time in the lab before making choices.
External Link(s)

Registration Citation

Citation
Hvide, Hans and Jae Ho Lee. 2019. "Easy Money, Cheap Talk, or Peeling Spuds." AEA RCT Registry. April 29. https://doi.org/10.1257/rct.4149-1.0
Former Citation
Hvide, Hans and Jae Ho Lee. 2019. "Easy Money, Cheap Talk, or Peeling Spuds." AEA RCT Registry. April 29. https://www.socialscienceregistry.org/trials/4149/history/45666
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
We divide participants into two groups: those that obtain an endowment through a windfall and those that obtain
the same amount through completing a physical effort task (the ”hard-earned” group). We test whether individuals in the hard-earned group make less risky and more patient choices than individuals in the windfall group.

Please note that the experiment is a follow-up on a previously run experiment (and disseminated as a working paper) by Hvide and Lee. For the risk task we follow Holt & Laury (2002).
Intervention Start Date
2019-04-01
Intervention End Date
2019-05-31

Primary Outcomes

Primary Outcomes (end points)
Risk choices
Primary Outcomes (explanation)
Risk preferences. Method described in our previous working paper.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We divide participants into two groups: those that obtain an endowment through a windfall and those that obtain
the same amount through completing a physical effort task (peeling potatoes). In the current experiment the control ("windfall") group will have a settling in period of about 30 minutes. Apart from that all the details are the same as in the initial experiment
Experimental Design Details
Not available
Randomization Method
By a computer.
Randomization Unit
Individuals
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
About 60 individuals in each group, 120 in total
Sample size: planned number of observations
About 60 individuals in each group, 120 in total
Sample size (or number of clusters) by treatment arms
About 60 individuals in each group, 120 in total
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Not calculated.
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan