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Giuliani F, Cannito L, Gigliotti G, Rosa A, Pietroni D, Palumbo R. The joint effect of framing and defaults on choice behavior. PSYCHOLOGICAL RESEARCH 2023; 87:1114-1128. [PMID: 36063226 PMCID: PMC10192178 DOI: 10.1007/s00426-022-01726-3] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 07/26/2021] [Accepted: 08/05/2022] [Indexed: 10/14/2022]
Abstract
The framing effect leads people to prefer a sure alternative over a risky one (risk aversion) when alternatives are described as potential gains compared to a context-dependent reference point. The reverse (risk propensity) happens when the same alternatives are described as potential losses. The default effect is the tendency to prefer a preselected alternative over other non-preselected given options, without facilitating nor incentivizing the choice. These two effects have mainly been studied separately. Here we provided novel empirical evidence of additive effects due to the application of both framing and default within the same decision problem in a large sample size (N = 960). In the baseline condition, where no default was provided, we measured the proportion of risky choices in life-or-death and financial decisions both presented in terms of potential gains or losses following the structure of the Asian disease problem. In the sure default condition, the same layout was proposed with a flag on the sure option, whereas in the risky default condition, the flag was on the risky option. In both default conditions, we asked participants whether they wanted to change the preselected option. Overall, the comparison between these conditions revealed three distinct main effects: (i) a classic framing effect, (ii) a larger risk propensity in the life-or-death scenario than in the financial one, and (iii) a larger default effect when the flag was on the risky, rather than on the sure, option. Therefore, we conclude that default options can enhance risk propensity. Finally, individual beliefs about the source of the default significantly moderated the strength of the effect. Underlying mechanisms and practical implications are discussed considering prominent theories in this field.
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Affiliation(s)
- Felice Giuliani
- Center for Advanced Studies and Technologies "CAST", University "G. d' Annunzio" of Chieti-Pescara, Via Luigi Polacchi, 11, 66100, Chieti, Italy.
- Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy.
| | - Loreta Cannito
- Center for Advanced Studies and Technologies "CAST", University "G. d' Annunzio" of Chieti-Pescara, Via Luigi Polacchi, 11, 66100, Chieti, Italy
- Department of Psychological Sciences, Health and Territory, University "G. D'Annunzio" of Chieti-Pescara, 66100, Chieti, Italy
| | - Gilberto Gigliotti
- Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Angelo Rosa
- Department of Management, Finance and Technology, University "LUM", Casamassima, Bari, Italy
| | - Davide Pietroni
- Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Riccardo Palumbo
- Center for Advanced Studies and Technologies "CAST", University "G. d' Annunzio" of Chieti-Pescara, Via Luigi Polacchi, 11, 66100, Chieti, Italy
- Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
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Huang B, Liu X, Wang Y, Li H, Si J, Wang D, Afzal K. Is the Discount Really Favorable? The Effect of Numeracy on Price Magnitude Judgment: Evidence From Electroencephalography. Front Neurosci 2022; 16:817450. [PMID: 35769701 PMCID: PMC9234211 DOI: 10.3389/fnins.2022.817450] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Grants] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 11/18/2021] [Accepted: 05/12/2022] [Indexed: 11/13/2022] Open
Abstract
Attractive price promotion will induce an unreasonable willingness to purchase, especially through shopping. However, it is not clear how numeracy, one of the essential abilities for understanding and applying numbers, influences the process of purchase judgment. In total, 61 participants were recruited to perform a price promotion task using electroencephalography. The results showed that consumers with low numeracy performed worse than their peers with high numeracy at the behavioral level, and they also had lower P3b amplitude and less alpha desynchronization, regardless of price promotion frameworks. These findings provided evidence on the processing of price information and provided further insights into how numeracy impacts price magnitude judgment.
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Affiliation(s)
| | | | | | | | - Jiwei Si
- School of Psychology, Shandong Normal University, Jinan, China
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Manippa V, Giuliani F, Brancucci A, Tommasi L, Palumbo R, Pietroni D. Affective perception of Euro banknotes: cognitive factors and interindividual differences. PSYCHOLOGICAL RESEARCH 2019; 85:121-132. [PMID: 31473804 DOI: 10.1007/s00426-019-01240-z] [Citation(s) in RCA: 6] [Impact Index Per Article: 1.2] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 03/29/2019] [Accepted: 08/20/2019] [Indexed: 11/28/2022]
Abstract
Money can be a tool to achieve a wide range of goals in everyday life. Different studies have reported that both the mere exposure to money and its use as a reward can determine cognitive and social effects. Nevertheless, little is known about the basic affective perception of Euro banknotes. Thus, in the present study we aim to assess differences in valence, arousal and familiarity evaluations of banknote pictures (from 5 to 500€) by taking into account gender, socioeconomic status and Love of Money (LoM) score, which measures the subjective attitude toward money, in a sample of participants. We found that valence and arousal increase with the nominal value of the banknotes, and that the relationship between these affective scores and the nominal value appears to be logarithmic (Weber's law) rather than linear. High value banknotes were evaluated as pleasant, highly arousing, and less familiar. Low value banknotes instead were evaluated as more familiar, less arousing and neutrally valenced. Finally, we found that valence and arousal evaluations are mainly influenced by the LoM score of our participants. Instead, gender and economic condition influenced only arousal scores. These findings suggest the importance of deepening the study of these variables to shed light on money-related biases and abnormal economic behaviors.
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Affiliation(s)
- Valerio Manippa
- Department of Psychological, Health and Territorial Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy.
| | - Felice Giuliani
- Department of Psychological, Health and Territorial Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy.,Laboratory of Behavioral Economics, Human Centered Design and Healthcare, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Alfredo Brancucci
- Department of Psychological, Health and Territorial Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Luca Tommasi
- Department of Psychological, Health and Territorial Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Riccardo Palumbo
- Laboratory of Behavioral Economics, Human Centered Design and Healthcare, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy.,Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
| | - Davide Pietroni
- Laboratory of Behavioral Economics, Human Centered Design and Healthcare, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy.,Department of Neuroscience, Imaging and Clinical Sciences, University "G. d' Annunzio" of Chieti-Pescara, Chieti, Italy
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