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Monetary Losses Do Not Loom Large in Later Life: Age Differences in the Framing Effect

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  • Joseph A. Mikels
  • Andrew E. Reed

Abstract

Studies of the framing effect indicate that individuals are risk averse for decisions framed as gains but risk seeking for decisions framed as losses. However, findings regarding age-related changes in susceptibility to framing are mixed. Recent work demonstrating age-related decreases in reactivity to anticipated monetary losses, but not gains, suggests that older and younger adults might show equivalent risk aversion for gains but discrepant risk seeking for losses. In the current study, older and younger adults completed a monetary gambling task in which they chose between sure options and risky gambles (the expected outcomes of which were equated). Although both groups demonstrated risk aversion in the gain frame, only younger adults showed risk seeking in the loss frame. Copyright 2009, Oxford University Press.

Suggested Citation

  • Joseph A. Mikels & Andrew E. Reed, 2009. "Monetary Losses Do Not Loom Large in Later Life: Age Differences in the Framing Effect," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 64(4), pages 457-460.
    • Handle: RePEc:oup:geronb:v:64b:y:2009:i:4:p:457-460
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    File URL: http://hdl.handle.net/10.1093/geronb/gbp043
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    Cited by:

    1. Shang, Xuesong & Duan, Hebing & Lu, Jingyi, 2021. "Gambling versus investment: Lay theory and loss aversion," Journal of Economic Psychology, Elsevier, vol. 84(C).
    2. Jean-Charles Fiolet & Carl Haas & Keith Hipel, 2016. "Risk-chasing behaviour in on-site construction decisions," Construction Management and Economics, Taylor & Francis Journals, vol. 34(12), pages 845-858, December.
    3. repec:cup:judgdm:v:12:y:2017:i:1:p:81-89 is not listed on IDEAS
    4. Otto, Philipp E. & Schmidt, Lennard, 2021. "Reservation price uncertainty: Loss, virtue, or emotional heterogeneity?," Journal of Economic Psychology, Elsevier, vol. 87(C).
    5. Leo Chi U Seak & Simone Ferrari-Toniolo & Ritesh Jain & Kirby Nielsen & Wolfram Schultz, 2023. "Systematic comparison of risky choices in humans and monkeys," Working Papers 202316, University of Liverpool, Department of Economics.
    6. Wei Pan & Yi-Shin Chen, 2018. "Network approach for decision making under risk—How do we choose among probabilistic options with the same expected value?," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.
    7. Walter Gontarek & Yacine Belghitar, 2018. "Risk governance: Examining its impact upon bank performance and risk‐taking," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 27(5), pages 187-224, December.
    8. repec:cup:judgdm:v:13:y:2018:i:5:p:471-483 is not listed on IDEAS
    9. Sumitava Mukherjee & Arvind Sahay & V. S. Chandrasekhar Pammi & Narayanan Srinivasan, 2017. "Is loss-aversion magnitude-dependent? Measuring prospective affective judgments regarding gains and losses," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(1), pages 81-89, January.
    10. Riccardo Sartori & Andrea Ceschi, 2011. "Uncertainty and its perception: experimental study of the numeric expression of uncertainty in two decisional contexts," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(1), pages 187-198, January.
    11. Andrea Lippi & Laura Barbieri & Mariacristina Piva & Werner De Bondt, 2018. "Time-varying risk behavior and prior investment outcomes: Evidence from Italy," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(5), pages 471-483, September.
    12. Hatime KAMÝLÇELEBÝ & Emre ÜNAL, 2014. "Analyzing Framing Effecty by an Experiment among Students in Turkey," Journal of Economic and Social Thought, KSP Journals, vol. 1(1), pages 27-31, December.
    13. Kamilçelebi, Hatime & Ünal, Emre, 2014. "Analyzing Framing Effecty by an Experiment among Students in Turkey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(1), pages 27-31..

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