Simplicity and Risk

Last registered on December 06, 2021
View Trial History

Pre-Trial

Trial Information

General Information

Title
Simplicity and Risk
RCT ID
AEARCTR-0008661
Initial registration date
December 04, 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
December 06, 2021, 10:22 AM EST

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

Locations

Country
United States of America
Region

Primary Investigator

Name
Indira Puri
Affiliation
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
Completed
Start date
2021-08-04
End date
2021-10-01
Keywords
Behavior
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
I use laboratory experiments to examine simplicity preferences in choice under risk.
External Link(s)

Registration Citation

Citation
Puri, Indira. 2021. "Simplicity and Risk." AEA RCT Registry. December 06. https://doi.org/10.1257/rct.8661-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2021-08-04
Intervention End Date
2021-10-01

Primary Outcomes

Primary Outcomes (end points)
- Certainty equivalents for lotteries with varying structures and levels of simplicity
Primary Outcomes (explanation)
- Using certainty equivalents for lotteries, I can determine whether risk aversion is heterogenous in simplicity
- By comparing pairs of lotteries with certain structures, I can determine whether axioms for simplicity are satisfied

Secondary Outcomes

Secondary Outcomes (end points)
- Heterogeneity along cognitive ability as measured by a submodule of Raven’s matrices
- Demographic characteristics and financial literacy
Secondary Outcomes (explanation)
- I can then also study the relationship between cognitive ability and simplicity preferences

Experimental Design

Experimental Design
I measure subjects’ preferences over lotteries with varying levels of complexity, as well as their cognitive ability, and link the results to the predictions made by simplicity theory and other theories of choice under risk.
Experimental Design Details
Randomization Method
Computer
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
n/a
Sample size: planned number of observations
Total: 780 partcipants
Sample size (or number of clusters) by treatment arms
n/a
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
MIT IRB
IRB Approval Date
2021-08-03
IRB Approval Number
E-3375
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Yes
Data Collection Completion Date
Final Sample Size: Number of Clusters (Unit of Randomization)
Was attrition correlated with treatment status?
Final Sample Size: Total Number of Observations
Cleaned: 239 participants
Final Sample Size (or Number of Clusters) by Treatment Arms
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials