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Framing effects on the strength of higher-order risk preferences

Author

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  • He, Pan

Abstract

This study provides the first experimental evidence on whether framing affects elicited intensity of prudence. The framing effect is not significant at the aggregate level, but a closer look shows that more than 70% of subjects are influenced by framing.

Suggested Citation

  • He, Pan, 2022. "Framing effects on the strength of higher-order risk preferences," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000180
    DOI: 10.1016/j.econlet.2022.110304
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    References listed on IDEAS

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    1. Louis Eeckhoudt & Harris Schlesinger, 2006. "Putting Risk in Its Proper Place," American Economic Review, American Economic Association, vol. 96(1), pages 280-289, March.
    2. Cary Deck & Harris Schlesinger, 2010. "Exploring Higher Order Risk Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1403-1420.
    3. Sebastian Ebert & Daniel Wiesen, 2011. "Testing for Prudence and Skewness Seeking," Management Science, INFORMS, vol. 57(7), pages 1334-1349, July.
    4. Sebastian Ebert & Daniel Wiesen, 2014. "Joint measurement of risk aversion, prudence, and temperance," Journal of Risk and Uncertainty, Springer, vol. 48(3), pages 231-252, June.
    5. Trautmann, Stefan T. & Kuilen, Gijs van de, 2018. "Higher order risk attitudes: A review of experimental evidence," European Economic Review, Elsevier, vol. 103(C), pages 108-124.
    6. Timo Heinrich & Thomas Mayrhofer, 2018. "Higher-order risk preferences in social settings," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 434-456, June.
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    Cited by:

    1. Seyed Mohsen Mirbagheri & Ata Ollah Rafiei Atani, 2025. "Managers’ Cognitive Biases in Decision Making: Revisiting an Effective Method," SAGE Open, , vol. 15(3), pages 21582440251, September.

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    More about this item

    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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