The effect of information disclosure on borrowing choices

Last registered on February 06, 2023


Trial Information

General Information

The effect of information disclosure on borrowing choices
Initial registration date
May 16, 2022

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
May 16, 2022, 5:27 PM EDT

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

Last updated
February 06, 2023, 5:28 AM EST

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



Primary Investigator

DIW Berlin

Other Primary Investigator(s)

PI Affiliation
DIW Berlin
PI Affiliation
Aarhus University

Additional Trial Information

On going
Start date
End date
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
In this study, we estimate the effect of information disclosure on credit card borrowing choices. In an online survey experiment, participants must choose whether they want to borrow on a revolving credit card for consumption. For each hypothetical choice, the borrowing amount can take one of five possible values and the APR can take one of three possible values. We have three treatments: i) participants are shown the borrowing amount and APR only, ii) in addition, participants are shown the dollar value of the interest they would pay if they do not pay off their credit card debt for one month, or iii) in addition, they are shown the annual interest amount if they do not make any payments on the credit card for one year.
External Link(s)

Registration Citation

Grohmann, Antonia, Jana Hamdan and Lukas Menkhoff. 2023. "The effect of information disclosure on borrowing choices." AEA RCT Registry. February 06.
Experimental Details


Control: Is shown the borrowing amount and the annual percentage rate (APR) only.
Treatment 1: Is shown the borrowing amount, the APR, and the value of the interest for one month.
Treatment 2: Is shown the borrowing amount, the APR, and value of the interest (compounded daily) for one year.
Intervention Start Date
Intervention End Date

Primary Outcomes

Primary Outcomes (end points)
Borrowing choices by treatment status
Primary Outcomes (explanation)
The primary outcome variable is a dummy variable that is 1 if the participants choose to borrow under the displayed conditions. We will test if participants under treatment 2 are less likely to accept a borrowing scenario than participants under treatment 1, and that participants under any treatment are less likely to accept a scenario than participants in the control setting.

Secondary Outcomes

Secondary Outcomes (end points)
Borrowing choices by other choice set features and heterogeneity analysis
Secondary Outcomes (explanation)
We will further analyze the impact of other choice set characteristics (borrowing amount and APR value) on the primary outcome variable. In addition, we will assess the role of participants characteristics (socio-demographics, financial literacy, risk preferences, self-control scale, loan history). For these analyses, we will include interaction terms with the treatment status.

Experimental Design

Experimental Design
We implement a discrete choice design in an online experiment. The choice sets differ along three dimensions: (1) amount of the hypothetical purchase in dollars, (2) credit card charges in annual percentage rate (APR). Third, treatments vary in information disclosure. In the control setting, information is displayed only in APR, while the treatments settings show, in addition, the APR in absolute terms for one month, or, for one year. For that purpose, a representative sample of the U.S. adult population is recruited using the platform Prolific.
Experimental Design Details
Randomization Method
Computerized randomization through Qualtrics on an individual basis. Each participant can be shown all treatment settings.
Randomization Unit
Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters
2000 individuals
Sample size: planned number of observations
2000 individuals
Sample size (or number of clusters) by treatment arms
Due to the random composition of all choice sets, all individuals can be exposed to treatment and control settings.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number


Post Trial Information

Study Withdrawal

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Is the intervention completed?
Data Collection Complete
Data Publication

Data Publication

Is public data available?

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials