Theory and Decision

, Volume 71, Issue 2, pp 235–250

A note on negativity bias and framing response asymmetry

Authors

    • School of Business AdministrationThe College of Management
Article

DOI: 10.1007/s11238-009-9168-9

Cite this article as:
Sonsino, D. Theory Decis (2011) 71: 235. doi:10.1007/s11238-009-9168-9

Abstract

An “unprocessed risk” is a collection of simple lotteries with a reduction-rule that describes the actual-payoff to the decision-maker as a function of realized lottery outcomes. Experiments reveal that the willingness to pay for unprocessed risks is consistently biased toward the payoff-level in the unprocessed representation. The “anchoring-to-frame” bias in cases of positive framing is significantly weaker than in cases of negative framing suggesting that rational “negativity bias” may reflect in asymmetric violations of rationality.

Keywords

Bounded rationalityFraming-invarianceLoss-aversion
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Copyright information

© Springer Science+Business Media, LLC. 2009