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Framing effects and risk perception: The effect of prior performance presentation format on investment fund choice

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  • Diacon, Stephen
  • Hasseldine, John

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  • Diacon, Stephen & Hasseldine, John, 2007. "Framing effects and risk perception: The effect of prior performance presentation format on investment fund choice," Journal of Economic Psychology, Elsevier, vol. 28(1), pages 31-52, January.
    • Handle: RePEc:eee:joepsy:v:28:y:2007:i:1:p:31-52
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    3. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
    4. Richard H. Thaler & Shlomo Benartzi, 2001. "Naive Diversification Strategies in Defined Contribution Saving Plans," American Economic Review, American Economic Association, vol. 91(1), pages 79-98, March.
    5. Stephen Diacon & Christine Ennew, 2001. "Consumer Perceptions of Financial Risk," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 26(3), pages 389-409, July.
    6. Kuhberger, Anton, 1998. "The Influence of Framing on Risky Decisions: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 75(1), pages 23-55, July.
    7. 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..
    8. Shlomo Benartzi & Richard H. Thaler, 2002. "How Much Is Investor Autonomy Worth?," Journal of Finance, American Finance Association, vol. 57(4), pages 1593-1616, August.
    9. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    10. Druckman, James N, 2001. "Using Credible Advice to Overcome Framing Effects," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(1), pages 62-82, April.
    11. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    12. Carhart, Mark M, 1997. "On Persistence in Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 52(1), pages 57-82, March.
    13. Anderson, Barry F. & Settle, John W., 1996. "The influence of portfolio characteristics and investment period on investment choice," Journal of Economic Psychology, Elsevier, vol. 17(3), pages 343-358, June.
    14. Clark-Murphy, Marilyn & Soutar, Geoffrey N., 2004. "What individual investors value: Some Australian evidence," Journal of Economic Psychology, Elsevier, vol. 25(4), pages 539-555, August.
    15. Fagley, N. S. & Miller, Paul M., 1997. "Framing Effects and Arenas of Choice: Your Money or Your Life?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 71(3), pages 355-373, September.
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    Cited by:

    1. Engel, Christoph & Reuben, Alicja, 2015. "The people's hired guns? Experimentally testing the motivating force of a legal frame," International Review of Law and Economics, Elsevier, vol. 43(C), pages 67-82.
    2. Huber, Christoph & Huber, Jürgen & Kirchler, Michael, 2022. "Volatility shocks and investment behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 56-70.
    3. Taejun (David) Lee & Wonjun Chung & Eric Haley, 2011. "Adherence of Retirement Mutual Fund Providers to the Securities and Exchange Commission (SEC)’s Advertising Guidance: Provision and Readability of Advertising Disclosure," Journal of Consumer Policy, Springer, vol. 34(4), pages 455-474, December.
    4. Cristofaro, Matteo, 2020. "“I feel and think, therefore I am”: An Affect-Cognitive Theory of management decisions," European Management Journal, Elsevier, vol. 38(2), pages 344-355.
    5. Nolte, Sven & Schneider, Judith C., 2018. "How price path characteristics shape investment behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 33-59.
    6. Huber, Christoph & Huber, Jürgen & Kirchler, Michael, 2021. "Market shocks and professionals’ investment behavior – Evidence from the COVID-19 crash," Journal of Banking & Finance, Elsevier, vol. 133(C).
    7. Borsboom, Charlotte & Janssen, Dirk-Jan & Strucks, Markus & Zeisberger, Stefan, 2022. "History matters: How short-term price charts hurt investment performance," Journal of Banking & Finance, Elsevier, vol. 134(C).
    8. Borsboom, Charlotte & Zeisberger, Stefan, 2020. "What makes an investment risky? An analysis of price path characteristics," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 92-125.
    9. Jiří Šindelář & Michal Erben, 2017. "Problems with quality in financial distribution - a state or market failure? [Problémy v distribuci finančních produktů: selhání trhu anebo regulace?]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2017(3), pages 5-17.
    10. McGowan, Féidhlim P. & Lunn, Peter D., 2020. "Supporting decision-making in retirement planning: Do diagrams on Pension Benefit Statements help?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 19(3), pages 323-343, July.
    11. Nobuyuki Hanaki & Cars Hommes & Dávid Kopányi & Anita Kopányi-Peuker & Jan Tuinstra, 2023. "Forecasting returns instead of prices exacerbates financial bubbles," Experimental Economics, Springer;Economic Science Association, vol. 26(5), pages 1185-1213, November.
    12. Devdeepta Bose & Henning Cordes & Sven Nolte & Judith Christiane Schneider & Colin Farrell Camerer, 2022. "Decision Weights for Experimental Asset Prices Based on Visual Salience," The Review of Financial Studies, Society for Financial Studies, vol. 35(11), pages 5094-5126.
    13. Christoph Huber & Jürgen Huber, 2019. "Scale matters: risk perception, return expectations, and investment propensity under different scalings," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 76-100, March.
    14. Lunn, Pete & McGowan, Féidhlim & Howard, Noel, 2018. "Do some financial product features negatively affect consumer decisions? a review of evidence," Research Series, Economic and Social Research Institute (ESRI), number RS78, June.
    15. Thorp, S. & Bateman, H. & Dobrescu, L.I. & Newell, B.R. & Ortmann, A., 2020. "Flicking the switch: Simplifying disclosure to improve retirement plan choices," Journal of Banking & Finance, Elsevier, vol. 121(C).
    16. Dennis Vrecko & Alexander Klos & Thomas Langer, 2009. "Impact of Presentation Format and Self-Reported Risk Aversion on Revealed Skewness Preferences," Decision Analysis, INFORMS, vol. 6(2), pages 57-74, June.
    17. Eric Terry & Bettina West, 2012. "Style matters: investment performance presentation effects on investor preferences," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 14(1/2), pages 102-114.
    18. Changha Jin & Paul Gallimore, 2010. "The effects of information presentation on real estate market perceptions," Journal of Property Research, Taylor & Francis Journals, vol. 27(3), pages 239-246, April.
    19. Andreas Hüsser & Werner Wirth, 2013. "Gravitation Toward Prior Performance in Mutual Fund Advertisings: Do Consumer Investors' Processing Abilities Account for Biased Information Processing?," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(2), pages 219-242, July.
    20. Liêu, L.M. & Pelster, M., 2020. "Framing and the disposition effect in a scopic regime," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 175-185.
    21. Karin Eberhard, 2023. "The effects of visualization on judgment and decision-making: a systematic literature review," Management Review Quarterly, Springer, vol. 73(1), pages 167-214, February.
    22. Glenzer, Franca & Gründl, Helmut & Wilde, Christian, 2014. ""And lead us not into temptation": Presentation formats and the choice of risky alternatives," ICIR Working Paper Series 16/14, Goethe University Frankfurt, International Center for Insurance Regulation (ICIR).
    23. Alen Nosić & Martin Weber, 2010. "How Riskily Do I Invest? The Role of Risk Attitudes, Risk Perceptions, and Overconfidence," Decision Analysis, INFORMS, vol. 7(3), pages 282-301, September.
    24. Jon Atwell & Marlon Twyman II, 2023. "Metawisdom of the Crowd: How Choice Within Aided Decision Making Can Make Crowd Wisdom Robust," Papers 2308.15451, arXiv.org.

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