Need, frames, and time constraints in risky decision-making

Adele Diederich (), Marc Wyszynski () and Stefan Traub ()
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Adele Diederich: Jacobs University Bremen
Marc Wyszynski: Jacobs University Bremen
Stefan Traub: Helmut-Schmidt-University

Theory and Decision, 2020, vol. 89, issue 1, No 1, 37 pages

Abstract: Abstract In two experiments, participants had to choose between a sure and a risky option. The sure option was presented either in a gain or a loss frame. Need was defined as a minimum score the participants had to reach. Moreover, choices were made under two different time constraints and with three different levels of induced need to be reached within a fixed number of trials. The two experiments differed with respect to the specific amounts to win and the need levels. The $$2 \times 2 \times 3$$2×2×3 design was a within-subject design. Data were evaluated on an overall and on a group level, the latter based on participants’ stated risk preference and on revealed preferences (choice proportions) using cluster analysis across subjects. Overall, the results showed riskier behavior when the choice options were presented as losses as compared to gains (framing effect) and when the induced need was highest. Time limits enhanced the framing effect.

Keywords: Need; Framing effect; Time constraints; Induced need; Reflection effect; Risky choice; Decision-making; Individual differences (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11238-020-09744-6

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