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A big fish or a small pond? Framing effects in percentages

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  • Li, Meng
  • Chapman, Gretchen B.

Abstract

This paper presents three studies that demonstrate people’s preference for a large percentage of a small subset over a small percentage of a large subset, when the net overall quantity is equated. Because the division of a set into subsets is often arbitrary, this preference represents a framing effect. The framing effect is particularly pronounced for large percentages. We propose that the effect has two causes: A partial neglect of the subset information, and a non-linear shaped function in the way people perceive percentages.

Suggested Citation

  • Li, Meng & Chapman, Gretchen B., 2013. "A big fish or a small pond? Framing effects in percentages," Organizational Behavior and Human Decision Processes, Elsevier, vol. 122(2), pages 190-199.
    • Handle: RePEc:eee:jobhdp:v:122:y:2013:i:2:p:190-199
    DOI: 10.1016/j.obhdp.2013.07.003
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    References listed on IDEAS

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    Cited by:

    1. Yan Sun & Barbara Mellers, 2016. "Trade-upgrade framing effects: Trades are losses, but upgrades are improvements," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(6), pages 582-588, November.
    2. Florin ANGHEL & Florin TÎRL?, 2014. "Evaluation Of Student’S Predispositions To Decision Making Biases," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 85-94, November.
    3. repec:cup:judgdm:v:11:y:2016:i:6:p:582-588 is not listed on IDEAS

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