A framing effect occurs when an agent’s choices are not invariant under changes in the way a decision problem is presented, e.g. changes in the way options are described (violation of description invariance) or preferences are elicited (violation of procedure invariance). Here we identify those rationality violations that underlie framing effects. Applying a model by List (2004), we attribute t...

A framing effect occurs when an agent’s choices are not invariant under changes in the way a decision problem is presented, e.g. changes in the way options are described (violation of description invariance) or preferences are elicited (violation of procedure invariance). Here we identify those rationality violations that underlie framing effects. Applying a model by List (2004), we attribute t...

Recent discoveries in behavioral economics have led to important new insights concerning what can happen in markets. Such gains in knowledge have come primarily via laboratory experiments—a missing piece of the puzzle in many cases is parallel evidence drawn from naturally-occurring field counterparts. We provide a small movement in this direction by taking advantage of a unique opportunity to ...

Online social networking sites represent significant new opportunities for Internet advertisers. However, results based on the real world cannot be generalized to all virtual worlds. In this research, the moderating effects of need for cognition (NFC) and knowledge were applied to examine the impact of message framing on attitudes toward social networking sites. A total of 216 undergraduates pa...

In this article, we offer a critical view of Thibodeau and Boroditsky who report an effect of metaphorical framing on readers' preference for political measures after exposure to a short text on the increase of crime in a fictitious town: when crime was metaphorically presented as a beast, readers became more enforcement-oriented than when crime was metaphorically framed as a virus. We argue th...

Although rational models of risk-averse consumers have difficulty explaining limited annuity demand, we have shown in previous work that re-framing the decision in consumption terms rather than investment terms significantly increases the relative attractiveness of life annuities. In this paper we test the relative effectiveness of our two framing contexts when different reference points are in...

Although rational models of risk-averse consumers have difficulty explaining limited annuity demand, we have shown in previous work that re-framing the decision in consumption terms rather than investment terms significantly increases the relative attractiveness of life annuities. In this paper we test the relative effectiveness of our two framing contexts when different reference points are in...

The closer a line extends toward a surrounding frame, the longer it appears. This is known as a framing effect. Over 70 years ago, Teodor Künnapas demonstrated that the shape of the visual field itself can act as a frame to influence the perceived length of lines in the vertical-horizontal illusion. This illusion is typically created by having a vertical line rise from the center of a horizonta...

This article is concernedwith howwemake decisions based on how problems are presented to us and the effect that the framing of the problem might have on our choices. Current philosophical and psychological accounts of the framing effect in experiments such as the Asian Disease Problem (ADP) concern reference points and domains (gains and losses).We question the importance of reference points an...

Every day, people face snap decisions when time is a limiting factor. In addition, the way a problem is presented can influence people's choices, which creates what are known as framing effects. In this research, we explored how time pressure interacts with framing effects in risky decision making. Specifically, does time pressure strengthen or weaken framing effects? On one hand, research has ...