Decision-making and the framing effect in a foreign and native language

Winskel, Heather; Ratitamkul, Theeraporn; Brambley, Victoria; Nagarachinda, Tulaya; Tiencharoen, Sutheemar

doi:10.1080/20445911.2016.1139583

Cited by 33 publications

(38 citation statements)

References 17 publications

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“…The main result was that the effect of foreign language use is not particularly robust across different contexts and populations. Finally, in the study of Winskel et al (2016) foreign language use leveled out the framing effect only in Study 1 (Asian disease problem), but this effect was completely absent in Study 2 (financial crisis problem).…”

Section: Foreign Language Effectmentioning

confidence: 84%

The effect of readability and language choice in management accounting reports on risk-taking: an experimental study

Besuglov

Crasselt

2020

J Bus Econ

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Concisely written financial documents facilitate information processing and help to improve decision-making. However, the role of readability seems to be still neglected in accounting practice. Readability concerns become even more relevant in the light of the fact that English is commonly used as the corporate language in multinational corporations throughout the world. Management reports prepared in a foreign language may be less readable than reports written in the preparer's mother tongue. With this study we set out to experimentally investigate the effects of report readability and choosing either managers' mother tongue or a foreign language as the reporting language on risk-taking in a management accounting context. We were able to show that a low level of readability significantly reduces the willingness to accept beneficial risks, a phenomenon which can be explained by the cognitive load effect. In line with the foreign language effect, we provide tentative evidence that the use of a foreign language in combination with a high readability level enhances the willingness to undertake beneficial risks. Further investigation revealed that the foreign language effect is present only for a medium-high language proficiency level and can be best explained by the reduced emotionality account.

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Section: Foreign Language Effectmentioning

confidence: 84%

The effect of readability and language choice in management accounting reports on risk-taking: an experimental study

Besuglov

Crasselt

2020

J Bus Econ

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“…As already mentioned, Keysar et al (2012) observed just the opposite tendency: Korean participants were more inclined to take bets in English than they were in Korean, and American students were more likely to accept bets in Spanish than they were in English. Winskel et al (2016) on the other hand, engaged their participants in a gambling game in Thai or English without finding significant differences between the two language conditions. Costa et al (2014b) asked their participants to pick one of two possible courses of action in a moral dilemma and found them to be substantially more prone to utilitarian decisions when they operated in a foreign language than when they operated in their native language.…”

Section: Discussionmentioning

confidence: 97%

“…Costa, Foucart, Arnon, Aparici, and Apesteguia (2014a) and Winskel, Ratitamkul, Brambley, Nagarachinda, and Tiencharoen (2016) conducted studies similar to that of Keysar et al (2012) but supplemented their designs with an additional task which was based on the "Asian disease problem" but dealt with financial gains and losses instead of human lives. They studied different combinations of native and foreign languages and obtained results that concord with those of Keysar et al (2012) suggesting a stronger impact of framing in the native compared to the foreign language.…”

Section: Foreign Language Effectmentioning

confidence: 99%

“…As outlined above, the research community has yet to reach agreement in terms of whether foreign language usage affects decision making, and if so, how it affects it. Advocates of an effect of foreign language usage on framing (Keysar et al, 2012, Costa et al, 2014aWinskel et al, 2016) are confronted with the findings of Oganian et al (2016) who propose that it is not foreign language usage, but rather switching between different languages that influences framing. In the present study, we compare these two theoretical viewpoints to determine which of them proves valid within a Swedish population.…”

Section: The Present Studymentioning

confidence: 99%

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Change your language, change your mind?

Langensee

Mårtensson

2019

Nordic Psychology

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Research findings on whether or not using a foreign language systematically alters people's decisions by mitigating framing effects, are inconclusive. The bulk of previous research suggests that our decisions are affected by the language they are made in. A more recent study however indicates that this phenomenon might be related to an unexpected switch of language prior to a decision rather than to the use of a foreign language as such. In order to advance the current state of knowledge, the present study assessed the decision preferences of 200 participants. Half of them were subjected to a switch of language right before answering the "Asian disease problem", the other half was not. A novel feature compared to previous research was to include cognitive measures in our design in order to capture the participants' language and task switching abilities. In line with the existent literature, where framing was shown to reliably affect people's decision patterns, our regression analysis suggested a significant main effect of type of frame on the participants' decision tendencies. Similarly, language of initial instruction appeared to be a significant predictor of the participants' choices. An unexpected switch of language and the participants' switching abilities on the other hand could not be corroborated as predictor variables.

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“…Past literature consistently demonstrates that approximately 40-60% of subjects prefer to choose a certain option to a probabilistic option in lottery games under "reasonable" support with the same expected payoff [46][47][48][49][50][51][52]. Also, some other literature shows that when the support of a lottery game is highly skewed and asymmetric (e.g., huge return with tiny probability such as buying lottery tickets), most subjects prefer to choose a probabilistic option to a certain option [53][54][55].…”

Section: A Discounting Elicitation Experimentsmentioning

confidence: 96%

Time Preferences between Individuals and Groups in the Transition from Hunter-Gatherer to Industrial Societies

2019

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Three societies, namely the hunter-gatherer, the agrarian and the industrial, represent the course of human history of cultural and economic development. In this course, each society exhibits distinct cultures and daily life practices that shape human behaviors and preferences, characterizing temporal actions and consequences at the individual and group levels. We examine individual and group time preferences and their relation across the three societies. To this end, we conduct a field experiment to elicit individual and group discount factors in three societies of Indonesia-(i) the fisheries, (ii) the farming and (iii) the urban societies-as proxies of the hunter-gatherer, agrarian and industrial societies, respectively. We find that both individual and group discount factors are the lowest (highest) in the fisheries (agrarian) society, while those in the urban society are in the middle. We also observe that the determinants of group discount factors differ across societies: members of the lowest and middle discount factors in a group play an important role in determining the group discount factor in the fisheries society, while only the members with the middle discount factor are key in agrarian and urban societies. Overall, our results suggest that individual and group discount factors non-monotonically change as societies transition from fisheries to agrarian and from agrarian to urban and that comparatively shortsighted people (the lowest and middle) are more influential than farsighted people in determining group time preferences.

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Decision-making and the framing effect in a foreign and native language

Cited by 33 publications

References 17 publications

The effect of readability and language choice in management accounting reports on risk-taking: an experimental study

The effect of readability and language choice in management accounting reports on risk-taking: an experimental study

Change your language, change your mind?

Time Preferences between Individuals and Groups in the Transition from Hunter-Gatherer to Industrial Societies

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