Chaotic Neutral? Framing Effects, Need for Chaos, and the Limits of ‘Burning It All Down’ in Decision Making Under Uncertainty

Abstract

Despite the vast literature on Prospect Theory, few studies use frames based on actual events or account for individuals whose previous losses moderate decision making under uncertainty. We use data from two original surveys on US adults to test whether framing effects hold in the context of the 2023 debt ceiling and government shutdown debates. We also test whether Need for Chaos, which indicates disaffection with society and the political system, moderates framing effects. We find that while most respondents are risk- averse toward potential gains and risk-accepting toward potential losses, those with higher Need for Chaos are more risk-accepting toward potential gains and risk-averse toward potential losses. These findings help to advance our theoretical understanding of Need for Chaos by demonstrating that these individuals, when tasked with choosing between outcomes framed as losses, may be more motivated to avoid further losses than by the desire to “burn it all down.”