Decision framing: moderating effects of individual differences and cognitive processing

Abstract

Two studies examined the effect of an individual difference variable, need for cognition (NC), and processing of the options on the occurrence of risky choice framing effects. In Study 1 (N ¼ 206), frame interacted with NC and math skill such that no framing effect was observed among those high in both NC and math skill. No effect was found for the processing manipulation of requesting a reason for one's choices. Study 2 (N ¼ 257) enhanced the processing of the problems by asking participants to write out the options as they would describe them to a friend. Results showed that frame interacted with NC and depth of processing such that no framing effect was observed among those high in NC who were in the deep processing condition. These findings suggest that NC and depth of processing need to be considered in concert in order to understand their moderating effects on framing.

Endings and Visions of New Beginnings: The Effects of Source of Unemployment and Duration of Unemployment on Entrepreneurial Intent

“…Fear of failure has been shown to influence opportunity related cognitions and decision making (Mitchell and Shepherd 2010;Wood and Rowe 2011), and social psychology research has also shown that individual differences can mitigate framing effects (Simon, Fagley, and Hallerman 2004). The implication for our model is that fear of failure may impact the risk tolerance, desirability, and feasibility cognitions associated with the loss framing engendered by layoff or long-term unemployment.…”

The Impact of Mathematical Competences and Cognitive Effort on the Appearance of the Framing Effect

“…The qualities of the mind suspected as playing a role in the decision making are either the natural need to make reflective and difficult choices or mathematical literacy. Indeed in the study by Simon, Fagley and Halleran (2004) people with a high level of the need for cognition and high self-evaluation of their mathematical skills displayed no framing effect in the Asian disease scenario, while in the participants with a low need for cognition, the framing effect was obtained regardless of their mathematical skills. Frederick (2005) assumed that both logical and mathematical skills, as well as the motivation to suppress intuitive answers would influence decision making when the decision problems call for the rules of normative reasoning.…”

Thinking about product attributes: Investigating the role of unconscious valence processing in attribute framing

“…For example, there has been a good deal of recent interest in how the style of processing (McElroy & Seta, 2003;Igou & Bless, 2007;Stanovich, 2008), memory retrieval (Reyna & Brainerd, 1991), emotional-rational inconsistencies (Wang, 2006) and individual differences (Chatterjee, Heath, Milberg & France, 2000;Levin, Gaeth, Scheriber & Lauriola, 2002;Xie & Wang, 2003;Simon, Fagley & Halleran, 2004;Wang, 2004;McElroy, Seta &Waring, 2007;Dickinson & Drummond, 2008) play out in the framing process and decision choice. Further, this may provide insight on recent findings that show incompatibility between trust and choice in decision-making (Keren, 2007).…”