Hypotheses

What are the hypotheses about?

All the hypotheses refer to an experiment in which subjects are asked to perform a task for 10 minutes. Specifically, they are asked to click two pre-determined keys on a keyboard alternatingly. They can click the keys as fast or as slow as they like. They can even choose not to click any key at all.

All subjects are paid a fix participation fee. However, there are several treatments, and in some treatments, subjects can earn additional money depending on their effort. Effort is measured in units, one unit being 1 alternation between the two keys.

We present to you several hypotheses comparing the average effort in any two treatments A and B. Each treatment involves between 525 and 575 subjects. At the end of each trading period, we will calculate a t-test statistic to see whether there is support for each hypothesis (with a 5% significance level).

Monetary Incentive: 4 vs. 10 cents 

In an experiment, there are two treatments A and B: 

A: Subject earns additional 4 cents for every 100 effort units

B: Subject earns additional 10 cents for every 100 effort units.  

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 11 to 15.

Monetary Incentive: 1000 vs. 100 points 

In an experiment, there are two treatments A and B: 

A: Subject earns an additional 1 cent for every 1000 effort units

B: Subject earns an additional 1 cent for every 100 effort units.  

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories.

You can trade about this hypothesis from April 11 to 15.

Monetary Incentive: 4 weeks 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject earns an additional 1 cent for every 100 effort units but will be paid in 4 weeks

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories.

You can trade about this hypothesis from April 11 to 15.

Limited Altruism: 10 cents 

In an experiment, there are two treatments A and B: 

A: Additionally, 10 cents are donated to a charity for every 100 effort units by the subjects. 

B: Subject earns additional 10 cents for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Social Reward Theory

You can trade about this hypothesis from April 11 to 15.

Probability Weighting: 50% vs. 1%

In an experiment, there are two treatments A and B: 

A: Subjects have 50% chance to earn additional 2 cents for every 100 effort units

B: Subjects have 1% chance to earn an additional 1 dollar for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Prospect Reward Theory.

You can trade about this hypothesis from April 11 to 15.

Probability Weighting: 50% vs. 100% 

In an experiment, there are two treatments A and B: 

A: Subjects have 50% chance to earn additional 2 cents for every 100 effort units

B: Subject earns an additional 1 cent for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Prospect Reward Theory.

You can trade about this hypothesis from April 11 to 15.

Encouragement

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject is only paid the participation fee but asked to perform as fast as she can. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A.) 

This hypothesis is predicted by Narrow Reward Theory.

You can trade about this hypothesis from April 11 to 15.

Relative Performance vs. Encouragement 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee but told about how well she did relative to others. 

B: Subject is only paid the participation fee but asked to perform as fast as she can. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A.) 

This hypothesis is predicted by Narrow Reward Theory.

You can trade about this hypothesis from April 11 to 15.

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Past hypotheses (closed markets)

Monetary Incentive: 40 cents 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject earns additional 40 cents if they reach at least 2000 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories.

You can trade about this hypothesis from April 6 to 10.

Monetary Incentive: 40 vs. 80 cents 

In an experiment, there are two treatments A and B: 

A: Subject earns additional 40 cents if they reach at least 2000 effort units

B: Subject earns additional 80 cents if they reach at least 2000 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 6 to 10.

Monetary Incentive: 1%

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subjects have 1% chance to earn an additional 1 dollar for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 6 to 10.

Altruism: 10 cents

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee. 

B: Additionally, 10 cents are donated to a charity for every 100 effort units by the subject. 

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Social Reward Theory.

You can trade about this hypothesis from April 6 to 10.

Altruism: 1 vs. 10 cents

In an experiment, there are two treatments A and B: 

A: Additionally, 1 cent is donated to a charity for every 100 effort units by the subject. 

B: Additionally, 10 cents are donated to a charity for every 100 effort units by the subject. 

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Social Reward Theory

You can trade about this hypothesis from April 6 to 10.

Loss Aversion

In an experiment, there are two treatments A and B: 

A: Subject earns additional 40 cents if they reach at least 2000 effort units

B: Subject earns additional 40 cents but lose it if they reach less than 2000 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by Prospect Reward Theory.

You can trade about this hypothesis from April 6 to 10.

Relative Performance Information

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject is only paid the participation fee but told about how well she did relative to others. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A) 

This hypothesis is predicted by Narrow Reward Theory.

You can trade about this hypothesis from April 6 to 10.

Absolute vs. Relative Information

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee but told about how others performed in the past. 

B: Subject is only paid the participation fee but told about how well she did relative to others. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A.) 

This hypothesis is predicted by Narrow Reward Theory.

You can trade about this hypothesis from April 6 to 10.

Monetary Incentive: 1 cent for 100 units 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject earns an additional 1 cent for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 1 to 5.

Monetary Incentive: 1 cent for 1000 units 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject earns an additional 1 cent for every 1000 effort units.  

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 1 to 5.

Monetary Incentive: 1 vs. 10 cents 

In an experiment, there are two treatments A and B: 

A: Subject earns an additional 1 cent for every 100 effort units

B: Subject earns additional 10 cents for every 100 effort units.  

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the 4 theories

You can trade about this hypothesis from April 1 to 5.

Altruism: 1 cent 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee. 

B: Additionally, 1 cent is donated to a charity for every 100 effort units by the subjects. 

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the Social Reward Theory

You can trade about this hypothesis from April 1 to 5.

Limited Altruism: 1 cent 

In an experiment, there are two treatments A and B: 

A: Additionally, 1 cent is donated to a charity for every 100 effort units by the subjects. 

B: Subject earns an additional 1 cent for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the Social Reward Theory

You can trade about this hypothesis from April 1 to 5.

Probability Weighting: 1 cent vs. 1%  

In an experiment, there are two treatments A and B: 

A: Subject earns an additional 1 cent for every 100 effort units

B: Subjects have 1% chance to earn an additional 1 dollar for every 100 effort units

Hypothesis: The average effort in B is significantly higher than in A. 

This hypothesis is predicted by the Prospect Reward Theory.

You can trade about this hypothesis from April 1 to 5.

Unconditional Bonus 

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject is additionally paid 40 cents bonus unconditional to effort. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A) 

This hypothesis is predicted by the Narrow Reward Theory

You can trade about this hypothesis from April 1 to 5.

Information about Others

In an experiment, there are two treatments A and B: 

A: Subject is only paid the participation fee.  

B: Subject is only paid the participation fee but told about how others performed in the past. 

Hypothesis: The average effort in B and A are the same. (No statistically significant difference between B and A) 

This hypothesis is predicted by the Narrow Reward Theory

You can trade about this hypothesis from April 1 to 5.