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Framing Effects and Impatience: Evidence from a Large Scale Experiment

Author

Listed:
  • van der Heijden, Eline

    (Tilburg University)

  • Klein, Tobias J.

    (Tilburg University)

  • Müller, Wieland

    (University of Vienna)

  • Potters, Jan

    (Tilburg University)

Abstract
We confront a representative sample of one 1,102 Dutch individuals with a series of incentivized investment decisions and also elicit their time preferences. There are two treatments that differ in the frequency at which individuals decide about the invested amount. The low frequency treatment stimulates decision makers to frame a sequence of risky decisions broadly rather than narrowly. We find that the framing effect is significantly larger for impatient than for patient individuals. This result is robust to controlling for various economic and demographic variables and for cognitive ability.

Suggested Citation

  • van der Heijden, Eline & Klein, Tobias J. & Müller, Wieland & Potters, Jan, 2012. "Framing Effects and Impatience: Evidence from a Large Scale Experiment," IZA Discussion Papers 7085, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7085
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rene Schwaiger & Laura Hueber, 2021. "Do MTurkers Exhibit Myopic Loss Aversion?," Working Papers 2021-12, Faculty of Economics and Statistics, Universität Innsbruck.
    2. van Rooij, Maarten & Teppa, Federica, 2014. "Personal traits and individual choices: Taking action in economic and non-economic decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 100(C), pages 33-43.
    3. Stracke, Rudi & Kerschbamer, Rudolf & Sunde, Uwe, 2017. "Coping with complexity – Experimental evidence for narrow bracketing in multi-stage contests," European Economic Review, Elsevier, vol. 98(C), pages 264-281.
    4. Alexander K. Koch & Julia Nafziger, 2019. "Correlates of Narrow Bracketing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(4), pages 1441-1472, October.
    5. Bockweg, Christian & Ponds, Eduard & Steenbeek, Onno & Vonken, Joyce, 2018. "Framing and the annuitization decision – Experimental evidence from a Dutch pension fund," Journal of Pension Economics and Finance, Cambridge University Press, vol. 17(3), pages 385-417, July.
    6. Fan, Wen & Zhang, Lifang, 2020. "Examining framing effect when subject's perspective matters: Evidence from China," Finance Research Letters, Elsevier, vol. 35(C).
    7. Hueber, Laura & Schwaiger, Rene, 2022. "Debiasing through experience sampling: The case of myopic loss aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 87-138.
    8. Lucks, Konstantin, 2016. "The Impact of Self-Control on Investment Decisions," MPRA Paper 73099, University Library of Munich, Germany.
    9. Schwaiger, Rene & Hueber, Laura, 2021. "Do MTurkers exhibit myopic loss aversion?," Economics Letters, Elsevier, vol. 209(C).

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    More about this item

    Keywords

    framing; choice under risk; time preference; experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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