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Positional concerns and framing effects in financial preferences

Latifa Barbara, Gilles Grolleau (), Assia Houfaf Khoufaf, Youcef Meriane and Naoufel Mzoughi

The Quarterly Review of Economics and Finance, 2018, vol. 68, issue C, 183-189

Abstract: We examine the relevance of relative standings in the financial domain. We introduced innovative hypotheses by testing whether framing (gain versus loss, risk level, amounts versus percentage, and money origin) affects stated positional preferences. Based on a quasi-experimental survey in Algeria (North Africa), our results show that while egalitarian concerns are prevalent in financial preferences among participants, positional and absolute states are also selected by a significant proportion of respondents. We also found some support to the insight that positional preferences are affected by framing, since loss/gain and risk framings are found to be significant. In other words, the proportion of respondents having positional preferences was found to be significantly higher in the gain (respectively, risky) framing, compared to a symmetric loss (respectively, certain) situation.

Keywords: Algeria; Financial preferences; Framing; Positional concerns (search for similar items in EconPapers)
JEL-codes: D0 D1 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:68:y:2018:i:c:p:183-189

DOI: 10.1016/j.qref.2017.09.002

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