Narrow Framing and Retirement Savings Decisions
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Theoretical studies suggest narrow framing underlies individuals' saving decisions. When narrow framing is applied to retirement savings decisions, narrow framers tend to make decisions about present consumption without considering future consumption, i.e., saving for consumption in retirement. Time preference for the present and narrow framers' preference to maintain the status quo lead to a decision that is less likely to increase savings for retirement. This study provides empirical evidence that narrow framing bias affects retirement savings decisions. Using a two‐part model, the probit estimation indicates narrow framers anticipated being less willing to increase retirement savings contributions compared to broad framers, and the OLS regression estimates that narrow framers anticipated contributing less than broad framers. Here, narrow framers anticipated being less willing to increase retirement savings (62.6% vs. 71.9%) and contributing less ($70.90 vs. $88.40) than broad framers, thus providing empirical evidence regarding the effects of behavioral biases on financial decisions.Keywords:
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Abstract Experimental research is reviewed which suggests that rational framing effects influence young children's social activities according to a logic of interdependence. However, young children are unlikely to possess some of the elaborate cognitive skills argued in the Target Article to be prerequisite for rational framing effects. Understanding rational framing effects requires understanding their ontogenetic origins.
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China's higher education expansion policy has been in effect for almost two decades. Under this policy, a growing number of youths have gained access to higher education, which aims to train students to be more rational. This study examines human rationality at a Chinese college through an experiment based on the risky-choice framing effect. The basic results show no classical framing effect with regard to individual decisions for the entire sample in a benchmark setting. However, when the participants' roles were manipulated and subsamples were investigated, a significant framing effect was found that appeared to be role-related and that varied by sex. These results help to elucidate evaluations of the effects of China's higher education policy and may assist in guiding further policy reforms.
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We investigated framing effects of television news coverage of an anarchist protest. Three treatment stories differed in their level of status quo support. Status quo support had significant effects on viewers, leading them to be more critical of, and less likely to identify with, the protesters; less critical of the police; and less likely to support the protesters' expressive rights. Status quo support also produced lower estimates of the protest's effectiveness, public support, and perceptions of newsworthiness. The results substantiate concerns about status quo support by showing that it can influence audience perceptions.
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Abstract This paper examines the occurrence of framing effects when more thought is given to problems. In Study 1, participants were presented with one of two frames of several decision problems. Participants' Need for Cognition (NC) scores were obtained, and half the participants were asked to justify their choices. Substantial framing effects were observed, but the amount of thought purportedly given to a problem, whether manipulated by justification elicitation or measured by NC scores, did not reduce the incidence of framing effects. In Study 2, participants responded to both frames of problems in a within‐subjects design. Again, NC scores were unrelated to responses on the first frame encountered. However, high‐NC, compared to low‐NC, participants were more consistent across frames of a problem. More thought, as indexed here, does not reduce the proclivity to be framed, but does promote adherence to normative principles when the applicability of those principles is detectable. Copyright © 2003 John Wiley & Sons, Ltd.
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A framing effect occurs when different, but logically equivalent, words or phrases (e.g., 10% employment or 90% unemployment) cause individuals to alter their decisions. Demonstrations of framing effects challenge a fundamental tenet of rational choice theory and suggest that public opinion is so malleable that it cannot serve as a useful guide to policymakers. In this article I argue that most previous work overstates the ubiquity of framing effects because it forces experimental participants to make decisions in isolation from social contact and context. I present two experiments where I show that some widely known framing effects greatly diminish and sometimes disappear when participants are given access to credible advice about how to decide. I discuss the implications of my findings for rational choice theory, and public opinion and public policy.
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A framing effect occurs when different, but logically equivalent, words or phrases (e.g., 10% employment or 90% unemployment) cause individuals to alter their decisions. Demonstrations of framing effects challenge a fundamental tenet of rational choice theory and suggest that public opinion is so malleable that it cannot serve as a useful guide to policy-makers. In this paper, I argue that most previous work overstates the ubiquity of framing effects because it forces experimental participants to make decisions in isolation from social contact and context. I present two experiments where I show that some classical framing effects greatly diminish and sometimes disappear when participants are given access to credible advice about how to decide. I discuss the implications of my findings for rational choice theory, and public opinion and public policy.
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Abstract A common EU foreign and security policy (CFSP) can be framed by elites and media as a risk or as an opportunity. This article examines the effects of framing in terms of ‘risk’ and ‘opportunity’ on public support. Moreover, we examine first whether the effect of framing CFSP as a ‘risk for the nation‐state’ has more impact than ‘risk for the EU’ framing, and second whether fear of globalization moderates the effect of news framing at the individual level. Drawing on a survey‐embedded experiment (n = 2,081) we found that participants in the ‘risk’ frame condition showed significantly lower levels of support compared to participants in the ‘opportunity’ condition. Those in the ‘risk for the nation‐state’ condition were significantly less supportive of CFSP than those in the ‘risk for the EU’ condition. The framing effect was moderated by fear of globalization so that individuals more afraid of globalization exposed to the ‘risk’ frame condition were significantly more susceptible to ‘risk’ framing than individuals with low fear of globalization. The results provide insights into the effects of valenced news frames and support for specific EU policies.
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In typical experiments examining the role of gain-loss framing on risky-choice, great care is taken to ensure that the scenarios are generic enough to avoid outside sources of bias. However, policy proposals in the real world that can have significant effects on human lives or involve large sums of money often originate from a partisan source. I examine the extent to which partisan identity influences choice in a standard risky-choice framing paradigm. I also test dual-process theory predictions for how the conflict between partisan loyalty and frame should reduce framing bias (but not partisan bias). Participants were given 12 hypothetical framing problems(6 gain/6 loss) in which the U.S. Congress was entertaining two policy proposals (sure/risky) in each scenario. In 8 of the problems, I manipulated which political party (Republican/Democrat) proposed which option. In the remaining 4, both options are bipartisan (Plan A/Plan B). I also measured participants’ partisan identity. Consistent with standard framing, participants were more risk-averse when options were framed as gains and more risk seeking when framed as losses. However, independent of the effect of frame, decision-makers’ risk-preferences also shifted in favor of their preferred party’s proposal. Data, syntax, and preregistration can be found at https://osf.io/gcbez/.
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