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Framing in the field. A simple experiment on the reflection effect

Author

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  • Michał Krawczyk

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

This study makes use of an unusual opportunity to manipulate framing of a simple decision under uncertainty: whether or not to answer an exam question when unsure which answer is correct and a missing response is scored higher than an incorrect one. Two treatments were compared in a natural field experiment: one in which the decision was framed in terms of losses, and the other – in terms of gains. Some alternative theories of decision making under risk, notably prospect theory, propose that individuals display reflection effect, i.e. tend to be more risk-seeking in losses than gains. No such evidence was found: subjects were generally risk-averse and this disposition was not affected by treatment.

Suggested Citation

  • Michał Krawczyk, 2011. "Framing in the field. A simple experiment on the reflection effect," Working Papers 2011-14, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2011-14
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP54.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
    1. Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
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    4. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 2002. "Framing decisions: Hypothetical and real," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1162-1175, November.
    5. Clotfelter, Charles T, 1983. "Tax Evasion and Tax Rates: An Analysis of Individual Returns," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 363-373, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.
    2. Michał Krawczyk, 2012. "To answer or not to answer? A field test of loss aversion," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 29.
    3. Katherine Baldiga, 2014. "Gender Differences in Willingness to Guess," Management Science, INFORMS, vol. 60(2), pages 434-448, February.
    4. 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.
    5. Wagner, Valentin, 2022. "Heterogeneous effects of grade framing," Labour Economics, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    framing; reflection effect; field experiments;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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