Narrow framing: Professions, sophistication, and experience

Liu, Yu–Jane; Wang, Mingchun; Zhao, Liang

doi:10.1002/fut.20407

Cited by 20 publications

(13 citation statements)

References 65 publications

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“…The percentage of narrow framers of this study (18.6%) is in line with those from the previous studies across various measures in different contexts (17% in Felső and Soetevent ; 25% in Gottlieb and Mitchell ; 16% in Kumar and Lim ; 20% in Liu, Wang, and Zhao ). Gottlieb and Mitchell () adopted the same measure with this study for older Americans.…”

supporting

confidence: 90%

“…Gottlieb and Mitchell () adopted the same measure with this study for older Americans. Kumar and Lim () and Liu, Wang, and Zhao () used the degree of clustering in investors' trades as a proxy to identify narrow framers. Felső and Soetevent () identified narrow framers whether consumers spend gift certificates differently than non‐gift labor income or cash gift.…”

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confidence: 99%

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Narrow Framing and Retirement Savings Decisions

Shin¹,

Kim²,

Heath³

2018

Journal of Consumer Affairs

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Theoretical studies suggest narrow framing underlies individuals' saving decisions. When narrow framing is applied to retirement savings decisions, narrow framers tend to make decisions about present consumption without considering future consumption, i.e., saving for consumption in retirement. Time preference for the present and narrow framers' preference to maintain the status quo lead to a decision that is less likely to increase savings for retirement. This study provides empirical evidence that narrow framing bias affects retirement savings decisions. Using a two‐part model, the probit estimation indicates narrow framers anticipated being less willing to increase retirement savings contributions compared to broad framers, and the OLS regression estimates that narrow framers anticipated contributing less than broad framers. Here, narrow framers anticipated being less willing to increase retirement savings (62.6% vs. 71.9%) and contributing less ($70.90 vs. $88.40) than broad framers, thus providing empirical evidence regarding the effects of behavioral biases on financial decisions.

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confidence: 90%

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confidence: 99%

Narrow Framing and Retirement Savings Decisions

Shin¹,

Kim²,

Heath³

2018

Journal of Consumer Affairs

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“…One consistent finding in the decision literature is that people are loss averse, with losses looming much larger psychologically than equivalent gains (Ariely, Huber, & Wertenbroch, ; Camerer, ; Novemsky & Kahneman, ; Zhang & Fishbach, ). Consumer research has explored how risk aversion strengthens and weakens dependent upon factors such as prior wins and losses, interpreting biases in risk preference as irrational (Gneezy & Potters, ; Liu, Wang, & Zhao, ; Russell & Thaler, ; Shiv, Loewenstein, Bechara, Damasio, & Damasio, ). An evolutionary perspective, however, suggests that loss aversion may be an adaptive bias that helped humans solve survival‐related ancestral challenges.…”

Section: Core Evolutionary Theories Applied To Established Areas Of Cmentioning

confidence: 99%

Evolution and consumer psychology

Durante

Griskevicius

2017

Consumer Psychology Review

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An evolutionary theoretical approach considers the adaptive function of behavior.Here we discuss what it means to use an evolutionary approach to generate predictions about consumer behavior and the value of applying an evolutionary lens to the study of consumer psychology. We begin with a discussion of the core insights of evolutionary theory and the common misperceptions associated with an evolutionary approach to the study of behavior. We then detail how specific evolutionarily informed theories can be applied to four core areas of consumer research: risk preference, competition and luxury consumption, self-control and temporal preferences, and the consumer behavior of women and families. We also discuss the strengths and limitations of an evolutionarily informed research program. K E Y W O R D Sevolutionary psychology, luxury consumption, natural selection, risk, self-control | INTRODUCTIONPicture it. The year is 2027. A spacecraft descends upon on a modern shopping mall carrying an alien behavioral scientist sent to collect data on Earthlings. The alien enters a store full of a dizzying array of opulent trinkets foreign to her eyes. She settles in to record observations and attempt to make sense of the smells, sights, and peculiar Earthling behaviors-from the aroma of heavily scented liquids being sprayed on passersby to women perched upon elevated chairs while heavy paint is applied to their faces. This alien would likely wonder what (on earth) is going on.Like our alien visitor, Charles Darwin was similarly puzzled by many of the strange characteristics and behaviors of the beings he encountered in his travels around the world. Darwin became a detective of behavior and through decades of observations formulated the theory of natural selection (Darwin, 1859). Darwin's theory became the unifying theory of behavior-guiding research in the life sciences. The theory of natural selection is a meta-theory that helps us understand the characteristics and behaviors of all living organisms, including humans.Today this interdisciplinary framework is the bridge between the social and the life sciences, regularly incorporated into modern psychology, anthropology, and other behavioral sciences.So how might an alien scientist seek to make sense of the strange behaviors in a 21st-century shopping mall? If she was anything like Charles Darwin, she would start with a simple question: What adaptive function might behavior serve?This question is the starting point for anyone seeking to understand modern behavior in an evolutionarily informed way. Here we discuss what it means to take an evolutionary approach to understanding consumer psychology and highlight the benefits of incorporating this approach in consumer research. We discuss relevant theories and findings and offer suggestions for easy ways to incorporate an evolutionary perspective into the study of consumer psychology.One important note before we begin: Applying an evolutionarily informed lens does not mean throwing away other approaches to consumer resear...

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“…The frame concepts have been an analysis instrument in some fields, including psychology, sociology, business management, investment behavior, negoitation, decision making, and others (Liu et al 2010). Further, frames are the cognitive shortcut that peoples used to understanding the complex information and simplify the complex phenomenom.…”

Section: Framing Effectmentioning

confidence: 99%

“…Liu et al (2010) state that traders in the complexity of choosing the decision in market investment framing will choose the simply option. To reduce the information bias, the investor need profesionlism, sophistication, and experience.…”

Section: Investment Decisionmentioning

confidence: 99%

Debit Credit Framing Effect in the Investment Alocation Decision

Mujilan

2017

KINERJA

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This study aims to test the effect of accounting information in the investment decision if information is framed in debit or INTRODUCTIONAccounting information is important for the managers and other stakeholders in the decisions proces. However, there is posibility that the decicion makers only watch the exibished financial information without consider the full meaning of accounting information based on its sources and alocations. Moreover, if the information provided has been framed for the information provider interest. Tvesrsky & Kahneman (1981) said that framing effect make the change of individual preferences when the same case is framed by different way. Framing effect has been widely studied in the decicion making, the prospect theory (Kahneman & Tversky, 1979) then be the most theory to explain the framing effect. Prospect theory is the result of the critize to the utility theory. But in the growed time, the fuzzy-trace theory also indicated has the power to explain framing effect in the accounting context (Chang et al. 2002;Arifin 2003).In the former study framing-effect likely tested in the form of positive or negative information that imply the existence of a profit or loss, but aren't specifically to compare the information based on debit and credit in the accounting. This study attempts to develop or formulate the framing instrument that essenced in accounting debit credit concept. Incompleteness debit and credit information as an example can be found likely informing the increasing assets (debit) but didn't inform that the increasing was due to an increase in the debt or equity (credit).This study tries to find what is the framing effect if information give only one side debit or credit. The focus study is the effect of framing in the portfolio investment decision. The accounting knows that the transaction has two impact on debit and credit. Debit is the alocation and credit is the source. Incompletness information make miss perception in the judgment process. So, this study will test the effect of framing in the information of asset vs liabilites, asset vs equity, asset vs revenue, and expense vs revenue.The assumption of this this study are (1) repondents haven't have the understanding of framing effect, so their decision are based on how to interprete and favor of received information. (2) Respondents understand about the kind information of assets, liabilities, equities, revenue, and expense. (3) Respondents can use the information in the judgment of how much fund portion to invest.This study aims to make experimental in the form of accounting information framing effect if the given information showing nominal value in debit side only or credit side only. This study also give effort to develop the instrument in the form of statement cases after vew some former references in framing cases.The research contributions are, first to give understanding and viewpoint about the impact of assymmetry information by framing accounting information. The framing is in the form of serving account i...

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Narrow framing: Professions, sophistication, and experience

Cited by 20 publications

References 65 publications

Narrow Framing and Retirement Savings Decisions

Narrow Framing and Retirement Savings Decisions

Evolution and consumer psychology

Debit Credit Framing Effect in the Investment Alocation Decision

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