Revealing a Reference Dependent Preference for Mixing: An Experimental Study on Risk Preferences over Gains and Losses

Last registered on June 10, 2019

Pre-Trial

Trial Information

General Information

Title
Revealing a Reference Dependent Preference for Mixing: An Experimental Study on Risk Preferences over Gains and Losses
RCT ID
AEARCTR-0004214
Initial registration date
May 15, 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
June 10, 2019, 10:41 PM EDT

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

Locations

Region

Primary Investigator

Affiliation
Texas A&M University

Other Primary Investigator(s)

PI Affiliation
Ohio State University

Additional Trial Information

Status
On going
Start date
2019-05-13
End date
2020-06-30
Secondary IDs
Abstract
We explore the effect of two distinct frames on preferences for mixtures. Given the pervasive evidence of a preference for mixtures---non-degenerate distributions over two lotteries---we study the effect of two different frames on this behavior. The distinctive feature of these frames is whether outcomes are presented as losses or gains, while final wealth outcomes remain the same under both treatments. We expect an increase in loss-loving behavior, which would be consistent with the prior findings.
External Link(s)

Registration Citation

Citation
Feldman, Paul and John Rehbeck. 2019. "Revealing a Reference Dependent Preference for Mixing: An Experimental Study on Risk Preferences over Gains and Losses." AEA RCT Registry. June 10. https://doi.org/10.1257/rct.4214-1.0
Former Citation
Feldman, Paul and John Rehbeck. 2019. "Revealing a Reference Dependent Preference for Mixing: An Experimental Study on Risk Preferences over Gains and Losses." AEA RCT Registry. June 10. https://www.socialscienceregistry.org/trials/4214/history/47931
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2019-05-13
Intervention End Date
2019-05-16

Primary Outcomes

Primary Outcomes (end points)
Changes in mixing behavior across frames.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
This is a lab experiment in which we elicit preferences over lotteries. Lotteries are limited to a linear convex budget in the probability simplex over three outcomes $2, $10, and $30. For the main treatment, we endow subjects with $30 and instead 'frame' outcomes as -$28, -$20, and $0. Therefore, both treatments have identical outcomes, but they are presented as either losses or gains. We have two treatment groups, the first is exposed to the loss-frame and then the gain-frame. For our other group, we reverse the order of the frames.
Experimental Design Details
Randomization Method
Random task order. 2 treatment groups. Pay on a decision at random. All risk is resolved using a ten-sided die.
Randomization Unit
Between-subjects and Within-Subjects.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
2
Sample size: planned number of observations
164-192
Sample size (or number of clusters) by treatment arms
82 in each treatment for between subject, 164 within-subject analysis.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Various, see pre-analysis. Summary: .3 correlation for Spearman rank correlation test. For t-tests a change in .10-.15 in the selected mixtures. Units are probabilities. Standard deviations between 17.44 and 39.41, mean and median around 33.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
UCSD Human Research Protections Program
IRB Approval Date
2018-07-31
IRB Approval Number
#171230
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