Social and Behavioral Sciences Commons^™

Examining The Influence Of Executive Resources And Mathematical Abilities On Framing Biases, Gabriel Allred

UNLV Theses, Dissertations, Professional Papers, and Capstones

The finding that the presentation of a choice (i.e., either as a loss or a gain) can affect and bias our willingness to engage in risk is one of the paramount findings of behavioral economics. First discussed by Tversky and Kahneman (1981), the framing effect demonstrates that when given two choices framed as a loss, we tend to become risk seeking. However, when the exact same outcome is presented as a gain, we become risk averse, choosing the more conservative option, regardless of the actual expected value. The effect is not limited to general research samples but has been demonstrated …