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Framing of Decisions: Effect on Active and Passive Risk Avoidance.

Framing of Decisions: Effect on Active and Passive Risk Avoidance.

Authors :
Huber, Oswald
Huber, Odilo W.
Bär, Arlette S.
Source :
Journal of Behavioral Decision Making; Dec2014, Vol. 27 Issue 5, p444-453, 10p
Publication Year :
2014

Abstract

ABSTRACT Decision makers intending to avoid risk in a decision situation can choose a less risky alternative (passive risk avoidance) or intervene actively in an alternative applying a risk-defusing action (active risk avoidance). In Experiment 1 (64 participants), we compared active and passive risk defusing in two framing conditions. In the negative frame, in the uncertain alternative, a change to the worse was possible; in the positive frame, a change to an improvement was possible. Each participant decided in both framing conditions. As expected, active risk avoidance behavior for preventing a negative outcome (i.e., in the negative frame) was more likely than for promoting a positive one (i.e., in the positive frame). If decision makers did not or could not actively defuse the risk, they chose in correspondence to the classical pattern: risk avoidance in the positive frame and risk seeking in the negative one. We replicated the latter result in a second experiment (32 participants). The classical framing pattern in passive risk avoidance in both experiments is remarkable, because participants were not presented or did not search for exact probabilities. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
08943257
Volume :
27
Issue :
5
Database :
Complementary Index
Journal :
Journal of Behavioral Decision Making
Publication Type :
Academic Journal
Accession number :
99044674
Full Text :
https://doi.org/10.1002/bdm.1821