|
Field
Abstract
|
Before
The aim of the study is to examine how cognitive uncertainty is moderated by cognitive ability in preference elicitation research. Moreover, it is examined whether subjects under higher cognitive uncertainty are more likely to accept to have their choice be replaced with a bid that maximizes subjects' expected payoff and whether replacing their choice varies with increasing cost levels.
|
After
The aim of the study is to examine how cognitive uncertainty is moderated by cognitive ability in preference elicitation research. Moreover, it is examined whether subjects under higher cognitive uncertainty are more likely to accept to have their choice be replaced with a bid that maximizes subjects' expected payoff and whether replacing their choice varies with increasing cost levels.
* This is an updated experiment that was cancelled due to covid
|
|
Field
Primary Outcomes (End Points)
|
Before
The bid that subjects submit, the level of their cognitive uncertainty, and whether or not they select to purchase the payoff-maximizing bid in relation to their cognitive ability.
|
After
Bid deviations from induced values, the level of their cognitive uncertainty, and whether or not they select to purchase the payoff-maximizing bid in relation to their cognitive ability.
|
|
Field
Intervention (Hidden)
|
Before
Subjects will participate in a computerized laboratory experiment where they will go through a sequence of stages as follows:
- Stage 1: A measure of cognitive ability (fluid intelligence) will be elicited for all subjects.
- Stage 2: Subjects will be endowed with a card that is worth an amount of X€ and will be asked to bid to sell their card to the experimenter. The value of the card will vary to 6, 8 and 10€ within-subjects in a random order.
- Stage 3: Subjects will be asked to bid to sell the card using a radioline that they can click on, in order to state their offer price.
- Stage 4: Once subjects confirm their bid, they are asked to select how certain they are about their bid in order to elicit cognitive uncertainty. Subjects will do that by selecting from a slider from 0 to 10, where 0 is highly uncertain and 10 is highly certain. If they select 10 (highly certain), their bid remains as is. If they select to be highly uncertain then their bid is $[0, 13]$ where 13 is the upper support of the allowed bid range. For each one point deviation from high certainty, the range of the bid is determined as a 10% difference of the upper bound of the bid distribution (which is set to 13€), while range limits are censored to 0 or 13 if the function evaluates outside those limits.
- Stage 5: Upon completion of the previous stage, subjects are given the chance to replace their selected bid (or bid range if they stated they were cognitive uncertain) with the payoff-maximizing bid. If subjects select this choice, they can do it at a cost of 0€ (i.e. for free), 1€, 2€, 3€ or 4€. If subjects select this option, their bid is replaced with the payoff-maximizing (which is the induced value) and the cost of purchasing the payoff-maximizing bid is subtracted from their payoffs. The cost of purchasing the payoff-maximizing bid will be varied in four levels (0, 1, 2, 3, 4€) for the three induced values (6, 8, 10€) in a random order. Therefore, 15 rounds/periods will be played in total with the BDM task.
- Stage 6: After the 15 rounds, one round will be randomly selected for payment. A number will be randomly selected from 0 to 13€ (randomly determined posted price). If subjects' bid is lower than the posted price, then subjects get paid the posted price minus the cost of purchasing the payoff-maximizing bid in the selected round; otherwise they get the induced value of the card minus the cost of purchasing the payoff-maximizing bid in the selected round.
|
After
Subjects will participate in a computerized laboratory experiment where they will go through a sequence of stages as follows:
- Stage 1: A measure of cognitive ability (fluid intelligence) will be elicited for all subjects.
- Stage 2: Subjects will be endowed with a card that is worth an amount of X€ and will be asked to bid to sell their card to the experimenter. The value of the card will vary to 6, 7 and 9€ within-subjects in a random order. The upper level of the support is varied at 11 and 13 euros.
- Stage 3: Subjects will be asked to bid to sell the card using a radioline that they can click on, in order to state their offer price.
- Stage 4: Once subjects confirm their bid, they are asked to select how certain they are about their bid in order to elicit cognitive uncertainty. Subjects will do that by selecting from a slider from 0 to 10, where 0 is highly uncertain and 10 is highly certain. If they select 10 (highly certain), their bid remains as is. If they select to be highly uncertain then their bid is $[0, Y]$ where Y is the upper support of the allowed bid range varied at two levels within subjects (11 and 13 euros). For each one point deviation from high certainty, the range of the bid is determined as a 10% difference of the upper bound of the bid distribution (which is set to Y€), while range limits are censored to 0 or Y if the function evaluates outside those limits.
- Stage 5: Upon completion of the previous stage, subjects are given the chance to replace their selected bid (or bid range if they stated they were cognitive uncertain) with the payoff-maximizing bid. If subjects select this choice, they can do it at a cost of 0€ (i.e. for free), 0.5€ or 1.5€. If subjects select this option, their bid is replaced with the payoff-maximizing (which is the induced value) and the cost of purchasing the payoff-maximizing bid is subtracted from their payoffs. The cost of purchasing the payoff-maximizing bid will be varied in three levels (0, 0.5, 1.5€) for the three induced values (6, 7, 9€) in a random order. Therefore, 18 rounds/periods will be played in total with the BDM task (3 IVs x 3 costs x 2 support levels).
- Stage 6: After the 18 rounds, one round will be randomly selected for payment. A number will be randomly selected from 0 to Y€ (randomly determined posted price). If subjects' bid is lower than the posted price, then subjects get paid the posted price minus the cost of purchasing the payoff-maximizing bid in the selected round; otherwise they get the induced value of the card minus the cost of purchasing the payoff-maximizing bid in the selected round.
|