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Using priming manipulations to affect time preferences and risk aversion: An experimental study

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  • Israel, Avi
  • Rosenboim, Mosi
  • Shavit, Tal

Abstract

The objective of this paper is to test how priming manipulation affects time preference (subjective discount rates) and risk aversion. In this study, we exposed subjects to visual (pictorial) and textual priming for vacation and for old age in order to influence their time preference. The results indicate that our pictorial priming manipulations did affect time preference and subjective discount rates: vacation scenes increased present preference, and pictures of older people reduced present preference. The pictorial priming with vacation scenes also increased risk aversion. On the other hand, textual priming did not affect time preference or risk aversion.

Suggested Citation

  • Israel, Avi & Rosenboim, Mosi & Shavit, Tal, 2014. "Using priming manipulations to affect time preferences and risk aversion: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 36-43.
    • Handle: RePEc:eee:soceco:v:53:y:2014:i:c:p:36-43
    DOI: 10.1016/j.socec.2014.08.006
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    References listed on IDEAS

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    7. Rosenboim, Mosi & Shavit, Tal & Shoham, Amir, 2010. "Financial decision making in collective society--A field test on Israeli kibbutz members and city residents," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 30-36, January.
    8. Gallopel-Morvan, Karine & Gabriel, Patrick & Le Gall-Ely, Marine & Rieunier, Sophie & Urien, Bertrand, 2011. "The use of visual warnings in social marketing: The case of tobacco," Journal of Business Research, Elsevier, vol. 64(1), pages 7-11, January.
    9. Dalia Gilad & Doron Kliger, 2008. "Priming the Risk Attitudes of Professionals in Financial Decision Making," Review of Finance, European Finance Association, vol. 12(3), pages 567-586.
    10. repec:cup:judgdm:v:4:y:2009:i:1:p:1-19 is not listed on IDEAS
    11. Shavit, Tal & Rosenboim, Mosi & Shani, Yaniv, 2014. "Time preference before and after a risky activity – A field experiment," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 30-36.
    12. Uri Benzion & Amnon Rapoport & Joseph Yagil, 1989. "Discount Rates Inferred from Decisions: An Experimental Study," Management Science, INFORMS, vol. 35(3), pages 270-284, March.
    13. Miki Malul & Mosi Rosenboim & Tal Shavit, 2010. "Costs of Mistrust between Ethnic Majority and Minorities: Evidence from Israel," Review of Social Economy, Taylor & Francis Journals, vol. 68(4), pages 447-464.
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    Cited by:

    1. David-Pur, Lior & Galil, Koresh & Rosenboim, Mosi, 2020. "To decrease or not to decrease: The impact of zero and negative interest rates on investment decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    2. Israel, Avi & Rosenboim, Mosi & Shavit, Tal, 2022. "The effect of SMS notifications on time preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    3. Israel, Avi & Rosenboim, Mosi & Shavit, Tal, 2021. "Time preference under cognitive load - An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    4. Novella, Rafael & Ramirez, Ericka G. Rascón, 2024. "Question-order effects on judgements under uncertainty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    5. Anthony Newell & Lionel Page, 2017. "Countercyclical risk aversion and self-reinforcing feedback loops in experimental asset markets," QuBE Working Papers 050, QUT Business School.
    6. Toshi H. Arimura & Elke D. Groh & Miwa Nakai & Andreas Ziegler, 2022. "The causal effect of private and organizational climate-related identity on climate protection activities: Evidence from a framed field experiment in Japan," MAGKS Papers on Economics 202229, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Przemysław Sawicki & Michał Białek, 2016. "Side Effects in Time Discounting Procedures: Fixed Alternatives Become the Reference Point," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-11, October.

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    More about this item

    Keywords

    Subjective discount rate; Priming; Visual priming; Textual priming; Time preference; Financial decision making; Financial education;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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