Consumer Choice and Corporate Bankruptcy Study 2

Last registered on January 27, 2022

Pre-Trial

Trial Information

General Information

Title
Consumer Choice and Corporate Bankruptcy Study 2
RCT ID
AEARCTR-0008411
Initial registration date
November 12, 2021

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
November 15, 2021, 11:58 AM EST

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

Last updated
January 27, 2022, 7:38 PM EST

Last updated is the most recent time when changes to the trial's registration were published.

Locations

There are documents in this trial unavailable to the public. Use the button below to request access to this information.

Request Information

Primary Investigator

Affiliation
Harvard Business School

Other Primary Investigator(s)

PI Affiliation
Boston College

Additional Trial Information

Status
In development
Start date
2022-02-01
End date
2022-12-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We employ an online randomized lab experiment to estimate the impact of a company's bankruptcy status on consumer demand for that company's products and services. We identify each participant's hypothetical willingness to pay for a product or service of a firm. We measure how that willingness to pay changes when we exogenously vary information about the firm's bankruptcy status and general condition.
External Link(s)

Registration Citation

Citation
Antill, Samuel and Megan Hunter. 2022. "Consumer Choice and Corporate Bankruptcy Study 2." AEA RCT Registry. January 27. https://doi.org/10.1257/rct.8411
Experimental Details

Interventions

Intervention(s)
Our interventions involve randomly providing participants with differing levels of information about a firm's bankruptcy status and general condition. The control group is told nothing. The baseline treatment group is told that the firm is currently in Chapter 11 bankruptcy. Supplemental treatment groups are told that the firm is bankrupt and also told additional information about that firm's bankruptcy and general condition.
Intervention Start Date
2022-02-01
Intervention End Date
2022-12-31

Primary Outcomes

Primary Outcomes (end points)
Our key outcome variable is the willingness to pay for a product or service of a firm. Our experimental design exogenously varies information about the firm. Notably, we vary the firm's bankruptcy status. We measure each participant's willingness to pay in ten hypothetical purchase decisions. We incentivize participants using the method of Kessler, Low, and Sullivan (2019).
Primary Outcomes (explanation)
We measure the willingness to pay for a firm B's product. We tell the participant how much an equivalent product costs at another firm A. We define the normalized willingness to pay as the ratio of the willingness to pay for firm B's product to the price of firm A's product. We truncate this value at 3, replacing values of the normalized willingness to pay that exceed 3 with the value 3 instead. We measure each participant's willingness to pay in ten hypothetical purchase decisions.

Secondary Outcomes

Secondary Outcomes (end points)
We also measure participants' preferences for firms and beliefs about bankruptcy through additional survey questions.
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We identify each participant's willingness to pay for a product or service of a firm. We measure how that willingness to pay changes when we exogenously introduce information about the firm, including its bankruptcy status. We measure each participant's willingness to pay in ten hypothetical purchase decisions. We incentivize participants using the method of Kessler, Low, and Sullivan (2019).
Experimental Design Details
Not available
Randomization Method
We implement our experiment using a Qualtrics survey. Qualtrics offers a computerized randomization procedure, which we use.
Randomization Unit
We randomize at the participant level.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
We exclude individuals that fail attention checks. We will continue to run the experiment until we have at least 100 observations, after excluding participants who fail attention checks, in each of our 16 treatment arms. Because of these filters, and because of the nature of our online survey vendor, we cannot precisely control the number of participants. Thus, while we hope for approximately 1600 participants, it is possible that we will end up with substantially more.
Sample size: planned number of observations
We exclude individuals that fail attention checks. We will continue to run the experiment until we have at least 100 observations, after excluding participants who fail attention checks, in each of our 16 treatment arms. Because of these filters, and because of the nature of our online survey vendor, we cannot precisely control the number of participants. Thus, while we hope for approximately 1600 participants, it is possible that we will end up with substantially more.
Sample size (or number of clusters) by treatment arms
As described above, there will be at least 100 individuals in each of 16 treatment arms. The treatment arms vary in the information provided and the industry of the hypothetical firm for which we ask follow-up survey questions.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
Boston College Institutional Review Board Office for Research Protections
IRB Approval Date
2021-11-10
IRB Approval Number
21.078.01e-2
IRB Name
Harvard University-Area Committee on the Use of Human Subjects
IRB Approval Date
2021-11-01
IRB Approval Number
MOD20-1634-02
Analysis Plan

There are documents in this trial unavailable to the public. Use the button below to request access to this information.

Request Information