All income increases a person's absolute wealth, but consumption decisions may be based more heavily on perceived changes in wealth. Change is computed by comparing a current state with a former state, and we predicted that people would be more likely to spend income framed as a gain from a current wealth state than income framed as a return to a prior state. Four experiments confirmed this prediction on people's memory for spending of a government tax rebate (Experiment 1), on unobtrusive self-report measures of spending an unexpected windfall (Experiments 2 and 3), and on actual spending on items for sale in a laboratory experiment (Experiment 4). These results can be explained, at least in part, by the reference points implied in the framing of income (follow-ups to Experiments 1 and 4). Discussion focuses on implications for the consumption of other commodities, assessments of risk, and government tax policies.

In vitro the binding of polyribosomes to smooth endoplasmic-reticulum membranes is more sensitive to ionic strength than is the binding to rough endoplasmic-reticulum membranes. Polyribosomes from the free and membrane-bound fractions bind with equal efficiency to endoplasmic-reticulum membranes.

Bonus of Rebate?: The Impact of Income Framing on Spending and Saving. By N. Epley, D. Mak and L. C. Idson (Journal of Behavioral Decision Making, Vol. 19, No. 3, pp. 213–227, 2006). DOI: 10.1002/bdm.519The above paper was published with an error in the title. The title should read: Bonus or Rebate?: The Impact of Income Framing on Spending and Saving.

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