Abstract:
The robustness of the framing effect was examined by manipulating payoff sizes, probability of risk and by cueing more effortful thinking via confidence ratings. In Experiment 1, a repeated measures analysis of variance was conducted to investigate the influence of payoff size and probability of risk on the framing effect. Results revealed that the framing effect disappears when the probability of risk is relatively low. A significant three-way interaction revealed that the effect of small probabilities on the framing effect disappears when the size of payoff was relatively high. In Experiment 2, effortful thinking was cued by requesting participants to rate their confidence in their choices. A repeated measures analysis of variance was conducted with the expectation that the framing effects observed in Experiment 1 would disappear in Experiment 2. Effect sizes revealed that the magnitude of framing effects was similar in both experiments. An examination of the confidence ratings revealed that participants were overly confident in their choices despite their preferences being illogical and inconsistent with normative principles.
