Framing effects on risk-taking behavior: evidence from a field experiment in multiple-choice tests

Pau Balart, Lara Ezquerra () and Iñigo Hernandez-Arenaz
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Pau Balart: Universitat de les Illes Balears
Lara Ezquerra: Universitat de les Illes Balears
Iñigo Hernandez-Arenaz: Public University of Navarre

Experimental Economics, 2022, vol. 25, issue 4, No 8, 1268-1297

Abstract: Abstract We exploit testing data to gain better understanding on framing effects on decision-making and performance under risk. In a randomized field experiment, we modified the framing of scoring rules for penalized multiple-choice tests. In penalized multiple-choice tests, right answers are typically framed as gains while wrong answers are framed as losses (Mixed-framing). In the Loss-framing proposed, both non-responses and wrong answers are presented in a loss domain. According to our theoretical model, we expect the change in the framing to decrease students’ non-response and to increase students’ performance. Under the Loss-framing, students’ non-response reduces by a 18%-20%. However, it fails to increase students’ scores. Indeed, our results support the possibility of impaired performance in the Loss-framing.

Keywords: Framing; Prospect Theory; Loss-Aversion; Risk-Taking; Test Taking; Non-Response (search for similar items in EconPapers)
JEL-codes: C93 D91 I20 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10683-022-09748-9

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