On the Modelling of Risk Preferences: A Classroom Replication Experiment

Last registered on September 20, 2015

Pre-Trial

Trial Information

General Information

Title
On the Modelling of Risk Preferences: A Classroom Replication Experiment
RCT ID
AEARCTR-0000850
Initial registration date
September 20, 2015

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
September 20, 2015, 4:53 AM EDT

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

Locations

Primary Investigator

Affiliation
Ghent University

Other Primary Investigator(s)

PI Affiliation
Henley Business School, University of Reading

Additional Trial Information

Status
In development
Start date
2015-09-28
End date
2015-09-29
Secondary IDs
Abstract
This is a classroom experiment aiming at replicating findings underlying historical developments that have triggered the development of descriptive models of decision making. In particular, we aim to replicate patterns underlying Markowitz-expected utility, Dual-expected utility and prospect theory. We further aim to test parametric fittings of these models against each-other, in order to assess and quantify the relative costs of using the simplifications underlying the simpler models conditional on subsets of data used. An additional purpose of this paper is to test the feasibility and implications of pre-registering hypotheses and an analysis plan for laboratory and classroom experiments.
External Link(s)

Registration Citation

Citation
Bouchouicha, Ranoua and Ferdinand Vieider. 2015. "On the Modelling of Risk Preferences: A Classroom Replication Experiment." AEA RCT Registry. September 20. https://doi.org/10.1257/rct.850-1.0
Former Citation
Bouchouicha, Ranoua and Ferdinand Vieider. 2015. "On the Modelling of Risk Preferences: A Classroom Replication Experiment." AEA RCT Registry. September 20. https://www.socialscienceregistry.org/trials/850/history/5324
Experimental Details

Interventions

Intervention(s)
There is no treatment intervention in the traditional sense. The experiment consists in measuring individual risk preferences using choice lists.
Intervention Start Date
2015-09-28
Intervention End Date
2015-09-29

Primary Outcomes

Primary Outcomes (end points)
We aim to test three different theories and their merits: Markowitz expected utility, Dual expected utility, and prospect theories. Details of the hypotheses are spelled out in the attached documents.
Primary Outcomes (explanation)
We elicit certainty equivalents. Only subjects switching only once will be included in the final analysis. We will normalise the certainty equivalents (ce) as follows: (ce-y)/(x-y), where x and y are the high and low outcomes in the binary prospects employed.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The experiment consists in the measurement of individual preferences. High nominal incentives up to 200 GBP will be used. Two subjects will be randomly selected to play for real money, in a class with approximately 50 students.
Experimental Design Details
Randomization Method
Two subjects will be extracted by drawing numbers from a bag.
Randomization Unit
Individual students.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
50
Sample size: planned number of observations
21x50
Sample size (or number of clusters) by treatment arms
not applicable
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
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