Individual differences in a switch from risk-averse preferences for gains to risk-seeking preferences for losses: can personality variables predict the risk preferences?

Individual differences on a framing problem and a reflection problem were examined in light of the Myers--Briggs Type Indicator. The predictions on information processing style, derived from Jungian personality type theory, were tested for the much-discussed framing effect in the Asian Disease Problem and for the reflection effect on which the framing effect presumably depends. As anticipated, the results revealed that business students with higher iNtuition/Extraversion scores and lower Judging score were more likely to be consistently risk-seeking. Conversely, those with higher Sensing/Judging scores were more likely to be consistently risk-averse. Both framing and reflection effects were displayed by those with higher Sensing/Judging scores. However, the second expected result was not supported. Rather, a so-called 'gray hair/clouds' effect (effect name inspired by Medin and Shoben's research in 1988), questioning the validity of risk propensity, was observed and analyzed. The somewhat surprising results and their theoretical and practical implications are discussed.