Framing effects and impatience: Evidence from a large scale experiment

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We confront a representative sample of 1102 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.
Original languageEnglish
Pages (from-to)701-711
JournalJournal of Economic Behavior and Organization
Volume84
Issue number2
DOIs
Publication statusPublished - 2012

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Framing effects
Experiment
Impatience
Economic variables
Investment decision
Decision maker
Risky decisions
Demographic variables
Cognitive ability
Time preference

Cite this

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title = "Framing effects and impatience: Evidence from a large scale experiment",
abstract = "We confront a representative sample of 1102 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.",
author = "{van der Heijden}, E.C.M. and T.J. Klein and W. M{\"u}ller and J.J.M. Potters",
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Framing effects and impatience : Evidence from a large scale experiment. / van der Heijden, E.C.M.; Klein, T.J.; Müller, W.; Potters, J.J.M.

In: Journal of Economic Behavior and Organization, Vol. 84, No. 2, 2012, p. 701-711.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Müller, W.

AU - Potters, J.J.M.

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AB - We confront a representative sample of 1102 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.

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JF - Journal of Economic Behavior & Organization

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