The goal of the study is to test a zero-price effect in digital markets.
In this experiment, participants perform a real effort task. More specifically, they are presented with a series of matrices containing letters 'd' and 'b'. Next to each letter there is a checkbox. The goal of the task is to check all the boxes next to each letter 'd'. If a participant does not check all 'd' boxed or checks, by mistake, a box next to a letter 'b', the matrix is not solve correctly.
Participants first perform some trial rounds to get familiar with the task. Next, they are informed that they will be rewarded for each correctly solved matrix. They can either perform it as in the trail round or they can get one of the tools that can help them perform the task. A basic tool will indicate how many letter 'd' are still left to check and highlight is a letter 'b' is checked by mistake. A premium tool has all these features plus all 'd' letters are highlighted. This allow participants to perform the task faster.
In one treatment, the basic tool is offered for 5 Pence and the premium tool for 10 Pence. In the other treatment, the basic tool is offered for free and the premium tool for 5 Pence.