Need, frames, and time constraints in risky decision-making

Abstract

In two experiments, participants had to choose between a sure and a risky option. The sure option was presented either in a gain or a loss frame. Need was defined as a minimum score the participants had to reach. Moreover, choices were made under two different time constraints and with three different levels of induced need to be reached within a fixed number of trials. The two experiments differed with respect to the specific amounts to win and the need levels. The 2 Â 2 Â 3 design was a within-subject design. Data were evaluated on an overall and on a group level, the latter based on participants' stated risk preference and on revealed preferences (choice proportions) using cluster analysis across subjects. Overall, the results showed riskier behavior when the choice options were presented as losses as compared to gains (framing effect) and when the induced need was highest. Time limits enhanced the framing effect. Keywords Need Á Framing effect Á Time constraints Á Induced need Á Reflection effect Á Risky choice Á Decision-making Á Individual differences

Gamble for the needy! Does identifiability enhances donation?

“…Only the results of Experiment 1 support the hypotheses: We observed slightly stronger framing effects among the 0-Need condition. This result supports the findings of Diederich et al [30] and Mishra and Fiddick [32]. Furthermore, stronger framing effects were found among participants who were assigned to the no-ID condition of Identity.…”

“…To compare our results with other studies that focused on need [29,30] we included Frame (gain, loss) and Time (1s, 3s) as additional factors. Probability to win a lottery was included to complete the design.…”

“…Previous research has shown interactions between frames and available time for making a choice in risky-choice tasks [29,30,33] with shorter time limits enhancing the framing effect.…”

“…Furthermore, frames may have a moderating effect on need. In their study, Diederich et al [30] induced need in terms of a minimum requirement of points a person has to meet during a series of games. Their results show that participants became more risk-taking in gain frames with increasing induced need.…”

Investigating the Impact of Offer Frame Manipulations On Responders Playing The Ultimatum Game

“…A third approach consists in limiting participants’ ability to engage in effortful cognitive processing of the framed statement using either time pressure or cognitive load (e.g., Whitney et al, 2006). Various studies found that time pressure amplifies framing effects, as it affects the depth of the statement processing and favors a fast and intuitive decision process (Diederich & Wyszynski, 2017; Diederich et al, 2018; Guo et al, 2017; McElroy & Conrad, 2009). Some framing effect studies used dual-task paradigms to investigate the impact of cognitive load on the processing of framed statement (i.e., McElroy and Conrad, 2009; Whitney et al, 2008).…”