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When Does Framing Influence Preferences, Risk Perceptions, and Risk Attitudes? The Explicated Valence Account
Author(s) -
Tombu Michael,
Mandel David R.
Publication year - 2015
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.1863
Subject(s) - framing effect , framing (construction) , prospect theory , risk perception , perception , risk seeking , psychology , valence (chemistry) , social psychology , economics , loss aversion , positive economics , microeconomics , engineering , chemistry , structural engineering , neuroscience , persuasion , organic chemistry
When faced with an expected loss and a choice between a sure option and a risky option, the gain–loss framing of the problem has been shown to influence option preference. According to prospect theory, this framing effect is the result of contradictory attitudes about risks involving gains and losses. This article develops and tests an alternative explicated valence account (EVA), which proposes that preference reversals are caused by differences in the explicated outcome valences of the options under consideration. EVA can account for previous findings where framing effects are observed, eliminated, or even reversed. In two experiments, EVA successfully predicted when framing effects were observed, eliminated, and reversed. The findings also showed that although framing influenced risk perception, it did not influence risk attitudes. Copyright © 2015 Her Majesty the Queen in Right of Canada Journal of Behavioral Decision Making © 2015 John Wiley & Sons, Ltd.