Misattribution of monetary amounts
Last registered on May 24, 2021

Pre-Trial

Trial Information
General Information
Title
Misattribution of monetary amounts
RCT ID
AEARCTR-0007707
Initial registration date
May 21, 2021
Last updated
May 24, 2021 8:56 AM EDT
Location(s)
Region
Primary Investigator
Affiliation
Central European University
Other Primary Investigator(s)
Additional Trial Information
Status
On going
Start date
2021-05-01
End date
2021-05-31
Secondary IDs
Abstract
Studies have shown that utility is reference dependent (e.g. Kahneman and Tversky 1979; Abeler et al. 2011; Koszegi and Rabin 2006). Thus, people care not only about the utility from consuming a good or service, but also about the degree to which it exceeds or falls short of expectations. If they are unable to disentangle the surprise factor from the intrinsic value of the outcome, they are predisposed to forming biased beliefs. This phenomenon called misattribution of reference-dependent utility has received little attention in the experimental literature. Evidence of misattribution of reference-dependence has been shown in effort-level tasks (Gagnon-Bartsch and Bushong 2017). However, other contexts have not been explored. A monetary context, for example, would be interesting to investigate both because money is not a directly consumed good, and because people have sufficient experience with money by using it in transactions on an everyday basis. Through an online experiment on Prolific, this paper will test if people misattribute sensations of elations or disappointments to the underlying quality of monetary amounts or money in general.
External Link(s)
Registration Citation
Citation
Kerekov , Rumen. 2021. "Misattribution of monetary amounts." AEA RCT Registry. May 24. https://doi.org/10.1257/rct.7707-1.0.
Experimental Details
Interventions
Intervention(s)
Intervention Start Date
2021-05-15
Intervention End Date
2021-05-21
Primary Outcomes
Primary Outcomes (end points)
Maximum number of tedious tasks that participants are willing to do for different amounts of money.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
Participants will be divided into two groups and will be given money (1 or 3 euro). Participants in the first group will receive money with certainty. Participants in the second group will receive money through a coin-flip. That means that they will have a 50% chance to get 1 euro and 50% chance to get 3 euro. Then, all participants will be involved in a reading comprehension task. At the end, participants will be asked to do tedious tasks for various monetary amounts.
Experimental Design Details
Randomization Method
coin-flip
Randomization Unit
way of receiving monetary amounts
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
1
Sample size: planned number of observations
300 participants
Sample size (or number of clusters) by treatment arms
50 participants control, 5x50 participants treatment
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
No
Is 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