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Money, Lives, and Frames: What Evidence from Bulgarian Students Tells about Framing of Risky Choices

Author

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  • Nikolay R. Rachev

    (Department of General, Experimental, Developmental, and Health Psychology, Sofia University “St. Kliment Ohridski”)

Abstract

Prospect theory accounted for the framing effect by assuming an automatic translation of the problem content into expected utilities and a passive acceptance of the externally provided frame regardless of problem content. The size of the framing effect in the famous Asian Disease problem initially suggested that these assumptions are met but subsequent research showed otherwise. In a dataset collected during regular class sessions among Bulgarian students, a framing effect was found for monetary problems but not for the Disease problem. These results are consistent with previous findings by the author and add to the view that a top-down and domain-specific approach might be a necessary complication when one is aiming to account for the psychological processes during risky choices.

Suggested Citation

  • Nikolay R. Rachev, 2019. "Money, Lives, and Frames: What Evidence from Bulgarian Students Tells about Framing of Risky Choices," Bulgarian Economic Papers bep-2019-04, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Feb 2019.
    • Handle: RePEc:sko:wpaper:bep-2019-04
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    File URL: https://www.uni-sofia.bg/index.php/eng/content/download/208810/1414140/file/BEP-2019-04.pdf
    File Function: First version, 2019
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    More about this item

    Keywords

    Prospect Theory; Framing; Asian Disease Problem; Content Effects; Top-Down Processing.;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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