Article Abstract:
A meta-analysis of Asian-disease-like studies reveals the existence of bidirectional framing effects on gains and losses. Risk aversion is induced when outcomes are presented as gains. On the other hand, risk seeking is induced when outcomes are presented as losses. The analysis also reveals that the probability levels, the size of the payoffs and the type of good at stake affect risk preference. In general, a rise in risk aversion is most likely to be produced by higher payoffs. Higher probabilities, meanwhile, result in increasing risk seeking for losses and increasing risk aversion for gains.
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Article Abstract:
The way a choice is presented affects the decision made. This phenomenon, called the framing effect, can be readily observed when people are presented with alternative options that emphasize either risk aversion or risk taking. However, framing effects are also affected by the amount of information provided or withheld in presenting the choice. The ambiguity in the problem may not be readily discernible but does not affect the choices that are made.
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Article Abstract:
A meta-analysis of framing effects showed that framing is a reliable phenomenon in risky decision making. Calculation of 230 effect sizes revealed that the overall framing effect between conditions is of small to moderate size. Significant differences were noted between research designs. With regards to the characteristics of framing research, only reference point manipulations were found to generate a framing effect.
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