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Framing Effects and Impatience: Evidence from a Large Scale Experiment

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Author Info

  • van der Heijden, Eline

    ()
    (Tilburg University)

  • Klein, Tobias J.

    ()
    (Tilburg University)

  • Müller, Wieland

    ()
    (University of Vienna)

  • Potters, Jan

    ()
    (Tilburg University)

Abstract

We confront a representative sample of one 1,102 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

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7085.

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Length: 24 pages
Date of creation: Dec 2012
Date of revision:
Publication status: published in: Journal of Economic Behavior and Organization, 2012, 84(2)), 701-711
Handle: RePEc:iza:izadps:dp7085

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Keywords: experiment; time preference; choice under risk; framing;

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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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