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Framing in the Field. A Simple Experiment on the Reflection Effect

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  • Michal Krawczyk

Abstract

This study makes use of an unusual opportunity to manipulate framing of a simple decision under uncertainty: whether or not to answer an exam question when unsure which answer is correct and a missing response is scored higher than an incorrect one. Two treatments were compared in a natural field experiment: one in which the decision was framed in terms of losses, and the other - in terms of gains. Some alternative theories of decision making under risk, notably prospect theory, propose that individuals display reflection effect, i.e. tend to be more risk-seeking in losses than gains. No such evidence was found: subjects were generally risk-averse and this disposition was not affected by treatment.

Suggested Citation

  • Michal Krawczyk, 2011. "Framing in the Field. A Simple Experiment on the Reflection Effect," Natural Field Experiments 00690, The Field Experiments Website.
  • Handle: RePEc:feb:natura:00690
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    5. Antoni Bosch-Domènech & Joaquim Silvestre, 2006. "Reflections on gains and losses: A 2 × 2 × 7 experiment," Journal of Risk and Uncertainty, Springer, vol. 33(3), pages 217-235, December.
    6. Clotfelter, Charles T, 1983. "Tax Evasion and Tax Rates: An Analysis of Individual Returns," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 363-373, August.
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    Cited by:

    1. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.
    2. Michał Krawczyk, 2012. "To answer or not to answer? A field test of loss aversion," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 29.
    3. Pau Balart & Lara Ezquerra & Iñigo Hernandez-Arenaz, 2022. "Framing effects on risk-taking behavior: evidence from a field experiment in multiple-choice tests," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1268-1297, September.
    4. Wagner, Valentin, 2022. "Heterogeneous effects of grade framing," Labour Economics, Elsevier, vol. 74(C).
    5. Katherine Baldiga, 2014. "Gender Differences in Willingness to Guess," Management Science, INFORMS, vol. 60(2), pages 434-448, February.

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