Dissecting the risky-choice framing effect: Numeracy as an individual-difference factor in weighting risky and riskless options
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Date
2008-08
Authors
Peters, Ellen
Levin, Irwin
Journal Title
Journal ISSN
Volume Title
Publisher
Society for Judgment and Decision Making
Abstract
Using five variants of the Asian Disease Problem, we dissected the risky-choice framing effect by requiring each
participant to provide preference ratings for the full decision problem and also to provide attractiveness ratings for
each of the component parts, i.e., the sure-thing option and the risky option. Consistent with previous research, more
risky choices were made by respondents receiving negatively framed versions of the decision problems than by those
receiving positively framed versions. However, different processes were evident for those scoring high and low on
numeracy. Whereas the choices of the less numerate showed a large effect of frame above and beyond any influence of
their evaluations of the separate options, the choices of the highly numerate were almost completely accounted for by
their attractiveness ratings of the separate options. These results are consistent with an increased tendency of the highly
numerate to integrate complex numeric information in the construction of their preferences and a tendency for the less
numerate to respond more superficially to non-numeric sources of information.
Description
14 pages
Keywords
Numeracy, Framing, Individual differences, Risky choices, Attribute framing
Citation
Peters, E., & Levin, I. P. (2008). Dissecting the risky-choice framing effect: Numeracy as an individual-difference factor in weighting risky and riskless options. Judgment and Decision Making, 3, 435-448.