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Loss Aversion or Lack of Trust: Why Does Loss Framing Work to Encourage Preventative Health Behaviors?

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  • Emily A. Beam
  • Yusufcan Masatlioglu
  • Tara Watson
  • Dean Yang

Abstract

We implemented a field experiment designed to increase participants’ willingness to visit a health clinic. We find differential responses to a $50 incentive framed as a loss versus framed as a gain. We find little support for the notion that loss aversion is responsible for the effectiveness of loss framing. Instead, it appears that loss framing promotes take-up by raising the perceived probability that the incentive will be provided as promised. The results suggest trust is an alternative pathway through which loss framing may affect behavior, and trust may be an important way to promote desirable health behaviors.

Suggested Citation

  • Emily A. Beam & Yusufcan Masatlioglu & Tara Watson & Dean Yang, 2022. "Loss Aversion or Lack of Trust: Why Does Loss Framing Work to Encourage Preventative Health Behaviors?," NBER Working Papers 29828, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29828
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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