Aging and decision making: Differences in susceptibility to the risky-choice framing effect between older and younger adults in Japan

Role of Emotion and Cognition on Age Differences in the Framing Effect

Framing effect studies indicate that individuals are risk averse for decisions framed as gains but risk-seeking for decisions framed as losses. Findings of age-related differences in susceptibility to framing are mixed. In the current study, we examined emotional arousal in two decision tasks (life saving vs. money gambling) to evaluate the effects of emotion on age differences in the framing effect. When cognitive abilities and styles were controlled, there was a framing effect in the younger group in the life-saving task, a high-emotional arousal task, while older adults did not display this classic framing effect pattern. They showed risk aversion in both positive and negative framing. Age differences existed in the framing effect. Conversely, younger and older adults in the money-gambling task both displayed the framing effect; there was no age difference. When the cognitive abilities were not controlled, the pattern of results in the high-emotional arousal task remained unchanged, while greater framing effects were found, from the perspective of effect size, for older than younger adults in the low-emotional arousal task. Limited cognitive resources would not hamper older adults’ performances when their emotional arousal was high. However, older adults with low-level emotional arousal were more susceptible than younger adults to framing because of declining cognitive capacities. This implied the importance of emotion in older adults’ decision making and supported the selective engagement hypothesis.

Age differences in risky choice: a meta-analysis

Does risk taking change as a function of age? We conducted a systematic literature search and found 29 comparisons between younger and older adults on behavioral tasks thought to measure risk taking (N= 4,093). The reports relied on various tasks differing in several respects, such as the amount of learning required or the choice framing (gains vs. losses). The results suggest that age-related differences vary considerably as a function of task characteristics, in particular the learning requirements of the task. In decisions from experience, age-related differences in risk taking were a function of decreased learning performance: older adults were more risk seeking compared to younger adults when learning led to risk-avoidant behavior, but were more risk averse when learning led to risk-seeking behavior. In decisions from description, younger adults and older adults showed similar risk-taking behavior for the majority of the tasks, and there were no clear age-related differences as a function of gain/loss framing. We discuss limitations and strengths of past research and provide suggestions for future work on age-related differences in risk taking.