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Framing effects on risk-taking behavior: evidence from a field experiment in multiple-choice tests

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  • Pau Balart

    (Universitat de les Illes Balears)

  • Lara Ezquerra

    (Universitat de les Illes Balears)

  • Iñigo Hernandez-Arenaz

    (Public University of Navarre)

Abstract

We exploit testing data to gain better understanding on framing effects on decision-making and performance under risk. In a randomized field experiment, we modified the framing of scoring rules for penalized multiple-choice tests. In penalized multiple-choice tests, right answers are typically framed as gains while wrong answers are framed as losses (Mixed-framing). In the Loss-framing proposed, both non-responses and wrong answers are presented in a loss domain. According to our theoretical model, we expect the change in the framing to decrease students’ non-response and to increase students’ performance. Under the Loss-framing, students’ non-response reduces by a 18%-20%. However, it fails to increase students’ scores. Indeed, our results support the possibility of impaired performance in the Loss-framing.

Suggested Citation

  • Pau Balart & Lara Ezquerra & Iñigo Hernandez-Arenaz, 2022. "Framing effects on risk-taking behavior: evidence from a field experiment in multiple-choice tests," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1268-1297, September.
  • Handle: RePEc:kap:expeco:v:25:y:2022:i:4:d:10.1007_s10683-022-09748-9
    DOI: 10.1007/s10683-022-09748-9
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    More about this item

    Keywords

    Framing; Prospect Theory; Loss-Aversion; Risk-Taking; Test Taking; Non-Response;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I20 - Health, Education, and Welfare - - Education - - - General

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