IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v121y2020icp232-251.html
   My bibliography  Save this article

Gain-loss framing in interdependent choice

Author

Listed:
  • Fiedler, Susann
  • Hillenbrand, Adrian

Abstract

Framing influences choice. However, little is known about the underlying mechanisms behind framing effects. We study gain-loss framing in binary modified dictator games. Subjects choose the selfish option more often in the loss frame compared to the gain frame. Recording visual fixations with eye-tracking, we find that dictators focus more on their own outcomes when facing losses. This suggests that losses to the own outcome are weighted more than losses to another player.

Suggested Citation

  • Fiedler, Susann & Hillenbrand, Adrian, 2020. "Gain-loss framing in interdependent choice," Games and Economic Behavior, Elsevier, vol. 121(C), pages 232-251.
    • Handle: RePEc:eee:gamebe:v:121:y:2020:i:c:p:232-251
    DOI: 10.1016/j.geb.2020.02.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825620300294
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2020.02.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dufwenberg, Martin & Gächter, Simon & Hennig-Schmidt, Heike, 2011. "The framing of games and the psychology of play," Games and Economic Behavior, Elsevier, vol. 73(2), pages 459-478.
    2. Russo, J Edward & Leclerc, France, 1994. "An Eye-Fixation Analysis of Choice Processes for Consumer Nondurables," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 274-290, September.
    3. Giovanna Devetag & Sibilla Guida & Luca Polonio, 2016. "An eye-tracking study of feature-based choice in one-shot games," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 177-201, March.
    4. Amos Arieli & Yaniv Ben-Ami & Ariel Rubinstein, 2011. "Tracking Decision Makers under Uncertainty," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 68-76, November.
    5. Aurélie Dariel, 2018. "Conditional Cooperation and Framing Effects," Games, MDPI, vol. 9(2), pages 1-12, June.
    6. Gilles Grolleau & Martin G. Kocher & Angela Sutan, 2016. "Cheating and Loss Aversion: Do People Cheat More to Avoid a Loss?," Management Science, INFORMS, vol. 62(12), pages 3428-3438, December.
    7. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    8. Giovanna Devetag & Sibilla Guida & Luca Polonio, 2016. "An eye-tracking study of feature-based choice in one-shot games," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 177-201, March.
    9. Schwerter, Frederik, 2013. "Social Reference Points and Risk Taking," Bonn Econ Discussion Papers 11/2013, University of Bonn, Bonn Graduate School of Economics (BGSE).
    10. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    11. Grolleau, Gilles & Kocher, Martin G. & Sutan, Angela, 2014. "Cheating and loss aversion: do people lie more to avoid a loss?," Discussion Papers in Economics 21387, University of Munich, Department of Economics.
    12. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    13. Ellingsen, Tore & Johannesson, Magnus & Mollerstrom, Johanna & Munkhammar, Sara, 2012. "Social framing effects: Preferences or beliefs?," Games and Economic Behavior, Elsevier, vol. 76(1), pages 117-130.
    14. Dohmen, Thomas & Falk, Armin & Fliessbach, Klaus & Sunde, Uwe & Weber, Bernd, 2011. "Relative versus absolute income, joy of winning, and gender: Brain imaging evidence," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 279-285, April.
    15. Kene Boun My & Nicolas Lampach & Mathieu Lefebvre & Jacopo Magnani, 2018. "Effects of gain-loss frames on advantageous inequality aversion," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(2), pages 99-109, December.
    16. Joshua Zonca & Giorgio Coricelli & Luca Polonio, 2019. "Does exposure to alternative decision rules change gaze patterns and behavioral strategies in games?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 14-25, August.
    17. Breitmoser, Yves & Tan, Jonathan H.W., 2020. "Why should majority voting be unfair?," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 281-295.
    18. Yuval Salant & Ariel Rubinstein, 2008. "(A, f): Choice with Frames -super-1," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1287-1296.
    19. Polonio, Luca & Di Guida, Sibilla & Coricelli, Giorgio, 2015. "Strategic sophistication and attention in games: An eye-tracking study," Games and Economic Behavior, Elsevier, vol. 94(C), pages 80-96.
    20. Armenak Antinyan, 2014. "Loss and Other-Regarding Preferences: Evidence From Dictator Game," Working Papers 03, Department of Management, Università Ca' Foscari Venezia.
    21. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    22. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    23. repec:cup:judgdm:v:4:y:2009:i:5:p:335-354 is not listed on IDEAS
    24. Breitmoser, Yves & Tan, Jonathan H.W., 2013. "Reference dependent altruism in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 127-140.
    25. Arieli, Amos & Ben-Ami, Yaniv & Rubinstein, Ariel, 2009. "Fairness Motivations and Procedures of Choice between Lotteries as Revealed through Eye Movements," Foerder Institute for Economic Research Working Papers 275720, Tel-Aviv University > Foerder Institute for Economic Research.
    26. repec:cup:judgdm:v:3:y:2008:i::p:396-403 is not listed on IDEAS
    27. Polonio, Luca & Coricelli, Giorgio, 2019. "Testing the level of consistency between choices and beliefs in games using eye-tracking," Games and Economic Behavior, Elsevier, vol. 113(C), pages 566-586.
    28. Elena Reutskaja & Rosemarie Nagel & Colin F. Camerer & Antonio Rangel, 2011. "Search Dynamics in Consumer Choice under Time Pressure: An Eye-Tracking Study," American Economic Review, American Economic Association, vol. 101(2), pages 900-926, April.
    29. Nina Horstmann & Andrea Ahlgrimm & Andreas Glöckner, 2009. "How Distinct are Intuition and Deliberation? An Eye-Tracking Analysis of Instruction-Induced Decision Modes," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2009_10, Max Planck Institute for Research on Collective Goods.
    30. Ian Krajbich & Bastiaan Oud & Ernst Fehr, 2014. "Benefits of Neuroeconomic Modeling: New Policy Interventions and Predictors of Preference," American Economic Review, American Economic Association, vol. 104(5), pages 501-506, May.
    31. Brekke, Kjell Arne & Konow, James & Nyborg, Karine, 2017. "Framing in a threshold public goods experiment with heterogeneous endowments," Journal of Economic Behavior & Organization, Elsevier, vol. 138(C), pages 99-110.
    32. Balcombe, Kelvin & Fraser, Iain & Williams, Louis & McSorley, Eugene, 2017. "Examining the relationship between visual attention and stated preferences: A discrete choice experiment using eye-tracking," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 238-257.
    33. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    34. Glenn W. Harrison & J. Todd Swarthout, 2019. "Eye-tracking and economic theories of choice under risk," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 26-37, August.
    35. repec:cup:judgdm:v:3:y:2008:i:8:p:641-658 is not listed on IDEAS
    36. Engel, Christoph & Rand, David G., 2014. "What does “clean” really mean? The implicit framing of decontextualized experiments," Economics Letters, Elsevier, vol. 122(3), pages 386-389.
    37. Krucien, Nicolas & Ryan, Mandy & Hermens, Frouke, 2017. "Visual attention in multi-attributes choices: What can eye-tracking tell us?," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 251-267.
    38. Joanna N. Lahey & Douglas Oxley, 2016. "The Power of Eye Tracking in Economics Experiments," American Economic Review, American Economic Association, vol. 106(5), pages 309-313, May.
    39. Chen, Chun-Ting & Huang, Chen-Ying & Wang, Joseph Tao-yi, 2018. "A window of cognition: Eyetracking the reasoning process in spatial beauty contest games," Games and Economic Behavior, Elsevier, vol. 111(C), pages 143-158.
    40. Stephanie M. Smith & Ian Krajbich & Ryan Webb, 2019. "Estimating the dynamic role of attention via random utility," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 97-111, August.
    41. Ernst Fehr & Antonio Rangel, 2011. "Neuroeconomic Foundations of Economic Choice--Recent Advances," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 3-30, Fall.
    42. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    43. B. Douglas Bernheim & Antonio Rangel, 2007. "Toward Choice-Theoretic Foundations for Behavioral Welfare Economics," American Economic Review, American Economic Association, vol. 97(2), pages 464-470, May.
    44. Joseph Tao-yi Wang & Michael Spezio & Colin F. Camerer, 2010. "Pinocchio's Pupil: Using Eyetracking and Pupil Dilation to Understand Truth Telling and Deception in Sender-Receiver Games," American Economic Review, American Economic Association, vol. 100(3), pages 984-1007, June.
    45. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antinyan, Armenak & Corazzini, Luca & Fi ar, Milo & Reggiani, Tommaso, 2022. "Mind the framing when studying social preferences in the domain of losses," Cardiff Economics Working Papers E2022/16, Cardiff University, Cardiff Business School, Economics Section.
    2. Lehberger, Mira & Grüner, Sven, 2021. "Consumers’ willingness to pay for plants protected by beneficial insects – Evidence from two stated-choice experiments with different subject pools," Food Policy, Elsevier, vol. 102(C).
    3. Carlos Alós-Ferrer & Alexander Ritschel, 2022. "Attention and salience in preference reversals," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 1024-1051, June.
    4. Paul M. Gorny & Petra Nieken & Karoline Ströhlein, 2023. "He, She, They? The Impact of Gendered Language on Economic Behavior," CESifo Working Paper Series 10458, CESifo.
    5. Benistant, Julien & Suchon, Rémi, 2021. "It does (not) get better: Reference income violation and altruism," Journal of Economic Psychology, Elsevier, vol. 85(C).
    6. François Cochard & Alexandre Flage, 2023. "Sharing Losses in Dictator and Ultimatum Games: A Meta-Analysis," Working Papers 2023-09, CRESE.
    7. Benjamin Ouvrard & Arnaud Reynaud & Stéphane Cezera & Alban Thomas & Dishant Jojit James & Murudaiah Shivamurthy, 2023. "Distributive Justice in the Field: How do Indian Farmers Share Water? ," Working Papers hal-04150233, HAL.
    8. Armenak Antinyan & Tigran Aydinyan & Anna Ressi & Lilia Wasserka-Zhurakhovska, 2023. "An Experimental Analysis of In-Group Favoritism and Out-Group Discrimination in the Gain and Loss Domain," CESifo Working Paper Series 10606, CESifo.
    9. Julien Benistant & Remi Suchon, 2020. "It Does (not) Get Better: Expected Income Violation and Altruism," Working Papers ECARES 2020-35, ULB -- Universite Libre de Bruxelles.
    10. Fischbacher, Urs & Hausfeld, Jan & Renerte, Baiba, 2022. "Strategic incentives undermine gaze as a signal of prosocial motives," Games and Economic Behavior, Elsevier, vol. 136(C), pages 63-91.
    11. Luca Corazzini & Matteo M. Marini, 2022. "Focal points in multiple threshold public goods games: A single-project meta-analysis," MUNI ECON Working Papers 2022-10, Masaryk University, revised Feb 2023.
    12. Zhang, Jun & Shi, Hongxu & Sheng, Jiping, 2022. "The effects of message framing on novel food introduction: Evidence from the artificial meat products in China," Food Policy, Elsevier, vol. 112(C).
    13. Bernold, Elizabeth & Gsottbauer, Elisabeth & Ackermann, Kurt A. & Murphy, Ryan, 2023. "Accounting for preferences and beliefs in social framing effects," LSE Research Online Documents on Economics 119353, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Susann Fiedler & Adrian Hillenbrand, 2018. "Gain-Loss Framing in Interdependent Choice," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2018_15, Max Planck Institute for Research on Collective Goods.
    2. David J. Cooper & Ian Krajbich & Charles N. Noussair, 2019. "Choice-Process Data in Experimental Economics," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 1-13, August.
    3. Stephanie M. Smith & Ian Krajbich & Ryan Webb, 2019. "Estimating the dynamic role of attention via random utility," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 97-111, August.
    4. Marchiori, Davide & Di Guida, Sibilla & Polonio, Luca, 2021. "Plasticity of strategic sophistication in interactive decision-making," Journal of Economic Theory, Elsevier, vol. 196(C).
    5. Fischbacher, Urs & Hausfeld, Jan & Renerte, Baiba, 2022. "Strategic incentives undermine gaze as a signal of prosocial motives," Games and Economic Behavior, Elsevier, vol. 136(C), pages 63-91.
    6. Barrafrem, Kinga & Hausfeld, Jan, 2020. "Tracing risky decisions for oneself and others: The role of intuition and deliberation," Journal of Economic Psychology, Elsevier, vol. 77(C).
    7. Carlos Alós-Ferrer & Alexander Ritschel, 2022. "Attention and salience in preference reversals," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 1024-1051, June.
    8. Polonio, Luca & Coricelli, Giorgio, 2019. "Testing the level of consistency between choices and beliefs in games using eye-tracking," Games and Economic Behavior, Elsevier, vol. 113(C), pages 566-586.
    9. Carlos Alós-Ferrer & Alexander Jaudas & Alexander Ritschel, 2021. "Attentional shifts and preference reversals: An eye-tracking study," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 16(1), pages 57-93, January.
    10. repec:cup:judgdm:v:16:y:2021:i:1:p:57-93 is not listed on IDEAS
    11. Benistant, Julien & Suchon, Rémi, 2021. "It does (not) get better: Reference income violation and altruism," Journal of Economic Psychology, Elsevier, vol. 85(C).
    12. Despoina Alempaki & Andrew M. Colman & Felix Kölle & Graham Loomes & Briony D. Pulford, 2022. "Investigating the failure to best respond in experimental games," Experimental Economics, Springer;Economic Science Association, vol. 25(2), pages 656-679, April.
    13. James Alm & Carolyn J. Bourdeaux, 2013. "Applying Behavioral Economics to the Public Sector," Hacienda Pública Española / Review of Public Economics, IEF, vol. 206(3), pages 91-134, September.
    14. Carlos Alós-Ferrer & Alexander Jaudas & Alexander Ritschel, 2021. "Effortful Bayesian updating: A pupil-dilation study," Journal of Risk and Uncertainty, Springer, vol. 63(1), pages 81-102, August.
    15. Jeffrey E. Harris & Mariana Gerstenblüth & Patricia Triunfo, 2018. "Smokers’ Rational Lexicographic Preferences for Cigarette Package Warnings: A Discrete Choice Experiment with Eye Tracking," Documentos de Trabajo (working papers) 0218, Department of Economics - dECON.
    16. Thunström, Linda, 2019. "Preferences for fairness over losses," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).
    17. Baumann, Florian & Benndorf, Volker & Friese, Maria, 2019. "Loss-induced emotions and criminal behavior: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 134-145.
    18. Carlos Alós-Ferrer & Johannes Buckenmaier, 2021. "Cognitive sophistication and deliberation times," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 558-592, June.
    19. Eddie Dekel & Barton L. Lipman, 2010. "How (Not) to Do Decision Theory," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 257-282, September.
    20. François Cochard & Alexandre Flage & Gilles Grolleau & Angela Sutan, 2020. "Are individuals more generous in loss contexts?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 845-866, December.
    21. Xavier Gabaix, 2017. "Behavioral Inattention," NBER Working Papers 24096, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:121:y:2020:i:c:p:232-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.