Cooperative choice and its framing effect under threshold uncertainty in a provision point mechanism

This paper explores how threshold uncertainty affects cooperative behaviors in the provision of public goods and the prevention of public bads. The following facts motivate our study. First, environmental (resource) problems are either framed as public bads prevention or public goods provision. Second, the occurrence of these problems is characterized by thresholds that are interchangeably represented as "nonconvexity," "bifurcation," "bi-stability," or "catastrophes." Third, the threshold location is mostly unknown. We employ a provision point mechanism with threshold uncertainty and analyze the responses of cooperative behaviors to uncertainty and to the framing for each type of social preferences categorized by a value orientation test. We find that aggregate framing effects are negligible, although the response to the frame is the opposite depending on the type of social preferences. "Cooperative" subjects become more cooperative in negative frames than in positive frames, whereas "individualistic" subjects are less cooperative in negative frames than in positive ones. This finding implies that the insignificance of aggregate framing effects arises from behavioral asymmetry. We also find that the percentage of cooperative choices non-monotonically varies with the degree of threshold uncertainty, irrespective of framing and value orientation. Specifically, the degree of cooperation is highest at intermediate levels of threshold uncertainty and decreases as the uncertainty becomes sufficiently large.

Discounts and consumer search behavior : the role of framing

This paper studies the pure framing effect of price discounts, focusing on its impact on consumer search behavior. In a simple two-shop search experiment, we compare search behavior in base treatments (where both shops post net prices without discounts) to discount treatments (where either the first shop or the second shop posts gross prices with separate discount offers, keeping the net prices constant). Although the objective search problems are identical across treatments, subjects search less in discount frames, irrespective where the discount is offered. There is evidence showing that subjects only base their decisions on salient characteristics of the situation rather than on the objective price information.

Fast and frugal framing effects?

Three experiments examine whether simple pair-wise comparison judgments, involving the “recognition heuristic” (Goldstein & Gigerenzer, 2002), are sensitive to implicit cues to the nature of the comparison required. Experiments 1 & 2 show that participants frequently choose the recognized option of a pair if asked to make “larger” judgments but are significantly less likely to choose the unrecognized option when asked to make “smaller” judgments. Experiment 3 demonstrates that, overall, participants consider recognition to be a more reliable guide to judgments of a magnitude criterion than lack of recognition and that this intuition drives the framing effect. These results support the idea that, when making pair-wise comparison judgments, inferring that the recognized item is large is simpler than inferring that the unrecognized item is small.

Influência do crédito e do efeito framing nos preços de referência

Muitos trabalhos estrangeiros e alguns trabalhos brasileiros indicam que os consumidores têm um preço de referência em sua mente ao analisar o preço de um bem em particular, sendo este processo interno, externo ou ambos. Verifica-se também que o modo como as situações no momento da compra são apresentados (efeito framing) também influencia o processo decisório. Estes fenômenos têm sido explicados por estudos comportamentais e de constructos psicológicos. Este trabalho tem como objetivo explorar o efeito do crédito (em particular as compras parceladas) e do efeito framing nos preços de referência. O motivador deste estudo foi o grande volume de linhas de crédito que tem sido oferecido no mercado brasileiro. A maior parcela dos respondentes (41%) pertence a classe C que representa maior fatia de renda nacional e correponde a cerca de 103 milhões de pessoas (dados de agosto de 2010) e tende a evoluir para 56% da população (113 milhões até 2014). O método de pesquisa usado foi o experimental com manipulação por instrução. Pode-se confirmar a hipótese de que o preço de referência pode apresentar uma variação onde a sensação de perda é reduzida ao ser transferida para o longo prazo ou simplesmente anulada pela satisfação imediata de posse do bem. Não se pode confirmar hipótese de que o crédito pode influenciar a formação de preços de referência. Contudo, pode-se explorar o tema e fornecer bases para motivar pesquisas futuras a respeito.

Increasing attractiveness of high-end products

An important decision brand managers have to make when positioning their products in a retail setting is to whether price new line extensions at parity or let products vary in the price/quality spectrum. Despite the growing interest in vertical line extension issues, there has been little research investigating how product-line length affects extension favorability. Therefore, this paper investigates the framing effect that a product line price structure has on consumer judgments of vertical extensions and, in particular, of upscale extensions. A basic proposition of this research is that the parent brand price range affects the perceived or psychological distance between extension and parent brand, influencing extension favorability ratings. In two experiments, it is shown that positioning an upscale extension in the context of a wide product-line will lead to higher consistency perceptions between the parent brand and a new upscale extension than an equivalent upscale extension positioned in the context of a narrow parent brand product-line.

Efectos marco : el problema de la enfermedad de Asia en una muestra de estudiantes argentinos

Resumen: El efecto marco de riesgo constituye un ejemplo de irracionalidad en la toma de decisiones. Se trata de las variaciones en las respuestas inducidas por el marco positivo o negativo en el que una tarea es presentada. El problema de la enfermedad de Asia, Tversky y Kahneman (1981), es una de las tareas diseñadas para evaluar este fenómeno. En el presente estudio se resumen los resultados de investigaciones previas respecto de este efecto y su relación con una serie de factores. Luego se exponen los resultados obtenidos en una muestra de 163 estudiantes universitarios argentinos. Estos resultados indican tanto en hombres como en mujeres, el efecto marco surge únicamente cuando la tarea es presentada negativamente: bajo esta condición los participantes tienden a elegir la opción riesgosa.

O processo de decisão em ambiente contábil sob a ótica da Teoria dos Prospectos

Na busca por entender de que forma profissionais de contabilidade estão analisando e repassando informações, o objetivo geral do trabalho é mostrar o processo de decisão em ambiente contábil sob a ótica da Teoria dos Prospectos, buscando demostrar que as decisões, são baseadas principalmente em julgamentos, contribuindo para consciência das imperfeições dos julgamentos e decisões. O objetivo específico é testar de que forma os efeitos Framing, e Certeza podem moldar uma tomada de decisão dentro do ambiente contábil. Sendo uma pesquisa descritiva, aplicou-se questionário estruturado e não disfarçado à profissionais da área de Contabilidade. O questionário foi dividido em dois tipos (I e II), dividindo assim o campo dos ganhos e das perdas. Procurou-se através da análise do resultado dos questionários evidenciar o impactos dos efeitos nesses profissionais. Dentre o resultado, pode-se constatar que de maneira geral as questões que envolvem certeza no campo dos ganhos são as mais procuradas entre os respondentes. É possível identificar a presença do Efeito Framing. Em relação ao gênero, é possível identificar maior impacto do Efeito Framing nos homens que nas mulheres. Os Efeitos Certeza e Pseudocerteza se fazem presentes em ambos os gêneros o que demostra certa cautela frente a tomada de decisão. Através desse estudo buscou-se auxiliar os decisores na tarefa de repensar seus atuais processos de tomada de decisão, por meio da conscientização de que são dotados de uma racionalidade limitada e que seus julgamentos são passivos de desvios.

A genetically mediated bias in decision making driven by failure of amygdala control.

Genetic variation at the serotonin transporter-linked polymorphic region (5-HTTLPR) is associated with altered amygdala reactivity and lack of prefrontal regulatory control. Similar regions mediate decision-making biases driven by contextual cues and ambiguity, for example the "framing effect." We hypothesized that individuals hemozygous for the short (s) allele at the 5-HTTLPR would be more susceptible to framing. Participants, selected as homozygous for either the long (la) or s allele, performed a decision-making task where they made choices between receiving an amount of money for certain and taking a gamble. A strong bias was evident toward choosing the certain option when the option was phrased in terms of gains and toward gambling when the decision was phrased in terms of losses (the frame effect). Critically, this bias was significantly greater in the ss group compared with the lala group. In simultaneously acquired functional magnetic resonance imaging data, the ss group showed greater amygdala during choices made in accord, compared with those made counter to the frame, an effect not seen in the lala group. These differences were also mirrored by differences in anterior cingulate-amygdala coupling between the genotype groups during decision making. Specifically, lala participants showed increased coupling during choices made counter to, relative to those made in accord with, the frame, with no such effect evident in ss participants. These data suggest that genetically mediated differences in prefrontal-amygdala interactions underpin interindividual differences in economic decision making.

Frames, biases, and rational decision-making in the human brain.

Human choices are remarkably susceptible to the manner in which options are presented. This so-called "framing effect" represents a striking violation of standard economic accounts of human rationality, although its underlying neurobiology is not understood. We found that the framing effect was specifically associated with amygdala activity, suggesting a key role for an emotional system in mediating decision biases. Moreover, across individuals, orbital and medial prefrontal cortex activity predicted a reduced susceptibility to the framing effect. This finding highlights the importance of incorporating emotional processes within models of human choice and suggests how the brain may modulate the effect of these biasing influences to approximate rationality.

Is a contained fire less risky than a going fire? Career and volunteer firefighters

Since fighting fires can pose a great risk to the lives of firefighters, it is important to understand how they perceive risks in dynamic wildfire situations. The aim of the current study was to determine whether career and volunteer firefighters differ in their perception of the risk of a going vs. contained fire and whether descriptions of a fire as either going or contained affected perceptions of risk. It was expected that career firefighters would rate a contained fire as significantly riskier than would volunteer firefighters. The sample consisted of 55 career and 84 volunteer CFA Victorian firefighters (134 males and 5 females). An ambiguous wildfire scenario was presented and described as either going or contained and risk ratings were recorded. Two-way ANOVA results showed that career firefighters rated a going fire as equally risky as a contained fire. On the other hand, volunteer firefighters perceived a fire described as contained to be significantly less risky than a fire described as going, despite the fact that the same fireground conditions were described in both cases. It was concluded that a framing effect had occurred and that career firefighters demonstrated a higher level of situation awareness than volunteer firefighters due to their heightened levels of risk perception when exposed to contained wildfire scenarios. A practical implication of the current research is that those conducting firefighting briefings need to be aware of possible framing effects in the way information is presented to firefighters and need to ensure that all briefings make risks cognitively salient to firefighters.

INFLUENCE OF DISCOUNT PRICE ANNOUNCEMENTS ON CONSUMER'S BEHAVIOR

The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler's Mental Accounting Theory. The research aims to evaluate the consumers' behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception.

Influence of discount price announcements on consumer's behavior

The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler's Mental Accounting Theory. The research aims to evaluate the consumers' behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception.

The Effect of Framing on Layoff Decisions: Are More-Experienced Managers More Rational? Does Computerized Data Make Any Difference?

[Excerpt] The effects of framing on decisions has been widely studied, producing research that suggests individuals respond to framing in predictable and fairly consistent ways (Bazerman, 1984, 1990; Tversky & Kahneman, 1986; Thaler, 1980). The essential finding from this body of research is that "individuals treat risks concerning perceived gains (for example, saving jobs and plants) differently from risks concerning perceived losses (losing jobs and plants)" (Bazerman, 1990, pp. 49-50). Specifically, individuals tend to avoid risks concerning gains, and seek risks concerning losses.

The effect of African Americans' ethnographic paradigms and cultural explanatory model of breast cancer in framing the male partner's attitudes and behaviors about the woman's breast cancer diagnosis

The disparate burden of breast cancer-related morbidity and mortality experienced by African American women compared with women of other races is a topic of intense debate in the medical and public health arenas. The anomaly is consistently attributed to the fact that at diagnosis, a large proportion of African American women have advanced-stage disease. Extensive research has documented the impacts of cultural factors and of socioeconomic factors in shaping African American women's breast-health practices; however, there is another factor of a more subtle influence that might have some role in establishing these women's vulnerability to this disease: the lack of or perceived lack of partner support. Themes expressed in the research literature reflect that many African American breast cancer patients and survivors consider their male partners as being apathetic and nonsupportive. ^ The purpose of this study was to learn how African American couples' ethnographic paradigms and cultural explanatory model of breast cancer frame the male partners' responses to the women's diagnosis and to assess his ability to cope and willingness to adapt to the subsequent challenges. The goal of the study was to determine whether these men's coping and adaptation skills positively or negatively affect the women's self-care attitudes and behaviors. ^ This study involved 4 African American couples in which the woman was a breast cancer survivor. Participants were recruited through a community-based cancer support group and a church-based cancer support group. Recruitment sessions were held at regular meetings of these organizations. Accrual took 2 months. In separate sessions, each male partner and each survivor completed a demographic survey and a questionnaire and were interviewed. Additionally, the couples were asked to participate in a communications activity (Adinkra). This activity was not done to fulfill any part of the study purpose and was not included in the data analysis; rather, it was done to assess its potential use as an intervention to promote dialogue between African American partners about the experience of breast cancer. ^ The questionnaire was analyzed on the basis of a coding schema and the interview responses were analyzed on the principles of hermeneutic phenomenology. In both cases, the instruments were used to determine whether the partner's coping skills reflected a compassionate attitude (positive response) versus an apathetic attitude (negative response) and whether his adaptation skills reflected supportive behaviors (the positive response) versus nonsupportive behaviors (the negative response). Overall, the women's responses showed that they perceived of their partners as being compassionate, yet nonsupportive, and the partner's perceived of themselves likewise. Only half of the women said that their partners' coping and adaptation abilities enabled them to relinquish traditional concepts of control and focus on their own well-being. ^ The themes that emerged indicate that African American men's attitudes and behaviors regarding his female partner's diagnosis of breast cancer and his ability to cope and willingness to adapt are influenced by their ritualistic mantras, folk beliefs, religious teachings/spiritual values, existential ideologies, socioeconomic status, and environmental factors and by their established perceptions of what causes breast cancer, what the treatments and outcomes are, and how the disease affects the entire family, particularly him. These findings imply that a culturally specific intervention might be useful in educating African American men about breast cancer and their roles in supporting their female partners, physically and psychologically, during diagnosis, treatment, and recovery. ^

Honesty in the provision of expert services: The effect of naturalistic framings and participants' professions

This thesis studies the incentives and behaviour of providers of expert services, like doctors, financial advisors and mechanics. The focus is in particular on provision of health care using a series of credence goods experiments conducted to investigate undertreatment, overtreatment and overcharging in a medical context. The findings of study one suggest that a medical framing compared to a neutral framing significantly increases pro-social behaviour for standard participants in economic experiments. Study two compares the behaviour of medical practitioners - mainly doctors - to students. It is observed that medical doctors’ undertreat and overcharge significantly less, but at the same time overtreat significantly more than students. The final study compares behaviours for other experts - accountants, engineers and lawyers - using experimental framings drawn from the respective contexts and students from the respective faculties as participants in credence goods experiments.