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Framing effects and impatience: Evidence from a large scale experiment

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  • van der Heijden, Eline
  • Klein, Tobias J.
  • Müller, Wieland
  • Potters, Jan

Abstract

We confront a representative sample of 1102 Dutch individuals with a series of incentivized investment decisions and also elicit their time preferences. There are two treatments that differ in the frequency at which individuals decide about the invested amount. The low frequency treatment stimulates decision makers to frame a sequence of risky decisions broadly rather than narrowly. We find that the framing effect is significantly larger for impatient than for patient individuals. This result is robust to controlling for various economic and demographic variables and for cognitive ability.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 84 (2012)
Issue (Month): 2 ()
Pages: 701-711

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Handle: RePEc:eee:jeborg:v:84:y:2012:i:2:p:701-711

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Web page: http://www.elsevier.com/locate/jebo

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Keywords: Framing; Choice under risk; Time preference; Experiment;

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Cited by:
  1. van Rooij, Maarten & Teppa, Federica, 2014. "Personal traits and individual choices: Taking action in economic and non-economic decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 100(C), pages 33-43.

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