Online experiment via Qualtrics: How to include two possible outcomes? | XM Community
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Hi,
I will use Qualtrics to run an online experiment for my master's thesis. This is the first time I use qualtrics.
The idea of the experiment is that people are asked to allocate money between two different assets. One asset has a certain return and one asset has two possible returns (with a 50% probability each).
For example:
Round 1. You are asked to allocate €10.000 between:
Asset 1 with certain + 1% return
Asset 2 with 50% chance of a return of + 17% and 50% chance of a return of - 5%.

Round 2. You are asked to allocate endowment X (depends on result from round 1) between:
Asset 1 with certain + 3% return
Asset 2 with 50% chance of a return of + 19% and 50% chance of a return of - 3%.

I have two questions with respect to running such an experiment via Qualtrics.

  1. How can I ensure that the endowment of the respondent in the second round is the result of round 1? So, for example, if the respondent in round 1 has chosen to invest all the money in asset 1, how can I ensure that the endowment in round 2 will be €10.100?

  2. How can I take the two possible returns in asset 2 into account in the scoring. So, for example, the respondent has chosen to invest all the money in asset 2. How can I ensure that there is a 50% probability that the endowment of the respondent after round 1 will be €11.700 (if the return is +17%) and that there is a 50% probability that the endowment of the respondent after round 1 will be €9.950 (if the return is -5%)?

Thank you in advance for your assistance.

Online_experiment_via_Qualtrics_How_to_include_two_possible_outcomes.qsfThe trick is to use Embedded Data, Randomizer and Math Operations with the Constant Sum question that allows the user to enter their values for each round.
Calculating the value for Asset 1 for Round 1 is as simple as multiplying whatever the participant scored by a multiplier - in this case the fixed 1% return.
Calculating the value for Asset 2 for Round 1 can be done in the same way although this time you randomize (using a randomizer) to be either 0.17 or -0.05.
.QSF attached.
Here's a test survey - https://greenwichuniversity.eu.qualtrics.com/jfe/form/SV_0O0nNFLKwfcdfSt
Hope that helps! Good luck.


Thank you very much for your reply. It is very helpful.


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