Framing and the cost of not knowing : the effects of framing on the trade-off between the cost of not knowing and the cost of finding out

Asma, L. (2007) Framing and the cost of not knowing : the effects of framing on the trade-off between the cost of not knowing and the cost of finding out.

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Abstract:Samenvatting Decision making is a very important human activity. Previous research on framing has established the effects of the decision representation on decision making (Kühberger, 1998). A previous study by De Hoog & Kooken (2006) established that a trade-off between the cost of not knowing and the cost of finding out leads to overall risk averse behavior. In this research, different frames are used to examine if these effects remain in different conditions. In the first experiment, it is examined what the effects are of adding less extreme values for the cost of not knowing and cost of finding out in the experiment. The questionnaire created by De Hoog & Kooken (2006) was extended and the participants had to answer sixteen instead of four questions. Furthermore, it was examined if the use of numbers created a change in risk behavior of the participants and it was tested if low costs of information and not knowing created different responses from a condition in which high costs were used. The variable probability method presented by Von Winterfeldt & Edwards (1986) was used in the two numerical conditions. In total, 93 Psychology students of the University of Twente participated in the research. It was expected that risk averseness would remain in the extended version of the questionnaire, this effect was indeed found. In the numerical condition, risk averseness largely disappeared, which was expected according to the literature (McElroy & Seta, 2003). In the low and high cost condition, largely the same results are found. Since it was expected that high costs would lead to more risk aversion, the hypotheses are rejected. Of course, future research can further examine these effects.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Psychology BSc (56604)
Link to this item:http://purl.utwente.nl/essays/58714
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