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Gain and loss framing to encourage effort provision: An experiment

Author

Listed:
  • Buckley, P.
  • Roussillon, B.
  • Teyssier, S.

Abstract

In this paper we compare the impact of a gain framing with a loss framing on a simple and repetitive task. Based on the expectation of higher reference points in the loss framing than in the gain framing, we expected to generate higher effort in the former. Instead, we find no evidence of loss framing effect on participants’ efforts over the experiment. Our results suggest that time pressure on a task kills the loss framing effect. However, experimental sessions without time pressure confirm that the potential effect of loss framing as a nudge is minimal in our context. Nowadays where nudges seem to be the king way for changing behavior we find that monetary incentives are still very powerful to incentive behaviour especially with students.

Suggested Citation

  • Buckley, P. & Roussillon, B. & Teyssier, S., 2021. "Gain and loss framing to encourage effort provision: An experiment," Working Papers 2021-02, Grenoble Applied Economics Laboratory (GAEL).
    • Handle: RePEc:gbl:wpaper:2021-02
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    File URL: https://gael.univ-grenoble-alpes.fr/sites/gael/files/doc-recherche/WP/A2021/gael2021-02.pdf
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    More about this item

    Keywords

    FRAMING EFFECTS; LOSS AVERSION; PROSPECT THEORY; REFERENCE DEPENDENCE; RISK AVERSION;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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