TY - JOUR
T1 - Don’t like the picture? Change the frame
T2 - the impact of cognitive ability and framing on risky choice
AU - Guillemette, Michael
AU - Browning, Chris
AU - Payne, Patrick
N1 - Publisher Copyright:
© 2015 Taylor & Francis.
PY - 2015/12/12
Y1 - 2015/12/12
N2 - This article identifies the effect a perceived upfront cost (UFC) has on the subsequent risky choice of older Americans with varying levels of cognitive ability. When respondents are faced with outcome alternatives framed with and without a UFC, we observe variation in respondents’ required outcomes based on the order in which the two frames are presented. We provide evidence that among respondents with lower cognitive ability, losses need not be realized to affect subsequent risky choice, and that a UFC lowers the willingness to take risk in a future period.
AB - This article identifies the effect a perceived upfront cost (UFC) has on the subsequent risky choice of older Americans with varying levels of cognitive ability. When respondents are faced with outcome alternatives framed with and without a UFC, we observe variation in respondents’ required outcomes based on the order in which the two frames are presented. We provide evidence that among respondents with lower cognitive ability, losses need not be realized to affect subsequent risky choice, and that a UFC lowers the willingness to take risk in a future period.
KW - cognitive ability
KW - framing
KW - risky choice
KW - upfront cost
UR - http://www.scopus.com/inward/record.url?scp=84942194295&partnerID=8YFLogxK
U2 - 10.1080/13504851.2015.1044643
DO - 10.1080/13504851.2015.1044643
M3 - Article
AN - SCOPUS:84942194295
VL - 22
SP - 1515
EP - 1518
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 18
ER -