AFFECT AND THE FRAMING EFFECT WITHIN INDIVIDUALS OVER TIME: RISK TAKING IN A DYNAMIC INVESTMENT SIMULATION

Changing Decisions: The Interaction between Framing and Decoy Effects

BACKGROUND

Cognitive biases are popular topics in psychology and marketing, as they refer to systematic cognitive tendencies in human thinking that deviate from logical and rational reasoning. The framing effect (FE) and the decoy effect (DE) are examples of cognitive biases that can influence decision making and consumer preferences. The FE involves how options are presented, while the DE involves the addition of a third option that influences the choice between the other two options.

METHODS

We investigated the interaction between the FE and the DE in the case of both incongruent (ID) and congruent (CD) decoys in a sample of undergraduates (n = 471). The study had a two (positive vs. negative valence) × three (original, congruent decoy, incongruent decoy) within-subject design.

RESULTS

The ID option reduces the FE in both positive- and negative-framed conditions compared to the controls, while adding the CD option increases the FE only in the positive-framed condition. Additionally, the inclusion of the CD option enhances the level of decision confidence, whereas no significant differences were found in the ID condition.

CONCLUSIONS

Our findings gave new insights into the interplay between two of the most frequent cognitive biases.

A negative emotional context disrupts the framing effect on outcome evaluation in decision making under uncertainty: An ERP study

The framing effect refers to the phenomenon that different descriptions of the same option lead to a shift in the choice of the decision maker. Several studies have found that emotional contexts irrelevant to a decision in progress still influence the framing effect on decision making. However, little is known about the potential role of emotional contexts in the framing effect on outcome evaluation under uncertainty and the related neural mechanisms. The present study measured event-related potentials (ERPs) to capture the time series of brain activities during the processing of gain- and loss-framed choices and outcomes primed with neutral and negative emotional contexts. The results revealed that in the neutral emotional context, the P300 amplitudes following both positive and negative feedback were greater in the gain-framed condition than those in the loss-framed condition, demonstrating a framing effect, whereas in the negative emotional context, this effect was unstable and observed only following negative feedback. In contrast, regardless of whether the feedback was positive or negative, the framing effect on the feedback-related negativity (FRN) amplitudes was insensitive to neutral and negative emotional contexts. Furthermore, the time-frequency analysis showed that the framing effect on the theta power related to the FRN was also insensitive to neutral and negative emotional contexts. Our findings suggest that brain responses to framing effects on outcome evaluation in a later cognitive appraisal stage of decision making under uncertainty may depend on the emotional context, as the effects were observed only following negative feedback in the negative emotional context.

Voice vs. silence: the role of cognitive appraisal of and emotional response to stressors

Stress is in the nature of work, employees, teams, and organizations. Some speak up under stress, whereas others keep silent. Given that employee voice has long been recognized to enhance high-quality decisions and organizational effectiveness, understanding conditions under which employees practice voice is important. In this article, we combine appraisal theory, prospect theory, and threat-rigidity thesis so as to enrich our understanding of the relationship between stressors and voice. In so doing, our theory paper integrates threat-rigidity thesis, prospect theory, and appraisal theory on the basis of the interaction between cognition and emotion, and it explores the detailed cognition-emotion-behavior (voice) relationship.

Replicating the Disease framing problem during the 2020 COVID-19 pandemic: A study of stress, worry, trust, and choice under risk

In the risky-choice framing effect, different wording of the same options leads to predictably different choices. In a large-scale survey conducted from March to May 2020 and including 88,181 participants from 47 countries, we investigated how stress, concerns, and trust moderated the effect in the Disease problem, a prominent framing problem highly evocative of the COVID-19 pandemic. As predicted by the appraisal-tendency framework, risk aversion and the framing effect in our study were larger than under typical circumstances. Furthermore, perceived stress and concerns over coronavirus were positively associated with the framing effect. Contrary to predictions, however, they were not related to risk aversion. Trust in the government's efforts to handle the coronavirus was associated with neither risk aversion nor the framing effect. The proportion of risky choices and the framing effect varied substantially across nations. Additional exploratory analyses showed that the framing effect was unrelated to reported compliance with safety measures, suggesting, along with similar findings during the pandemic and beyond, that the effectiveness of framing manipulations in public messages might be limited. Theoretical and practical implications of these findings are discussed, along with directions for further investigations.

Training in statistical analysis reduces the framing effect among medical students and residents in Argentina

PURPOSE

The framing effect refers to a phenomenon wherein, when the same problem is presented using different representations of information, people make significant changes in their decisions. This study aimed to explore whether the framing effect could be reduced in medical students and residents by teaching them the statistical concepts of effect size, probability, and sampling for use in the medical decision-making process.

METHODS

Ninety-five second-year medical students and 100 second-year medical residents of Austral University and Buenos Aires University, Argentina were invited to participate in the study between March and June 2017. A questionnaire was developed to assess the different types of framing effects in medical situations. After an initial administration of the survey, students and residents were taught statistical concepts including effect size, probability, and sampling during 2 individual independent official biostatistics courses. After these interventions, the same questionnaire was randomly administered again, and pre- and post-intervention outcomes were compared among students and residents.

RESULTS

Almost every type of framing effect was reproduced either in the students or in the residents. After teaching medical students and residents the analytical process behind statistical concepts, a significant reduction in sample-size, risky-choice, pseudo-certainty, number-size, attribute, goal, and probabilistic formulation framing effects was observed.

CONCLUSION

The decision-making of medical students and residents in simulated medical situations may be affected by different frame descriptions, and these framing effects can be partially reduced by training individuals in probability analysis and statistical sampling methods.

THE INTERACTION OF INTUITION AND RATIONALITY DURING ESCALATED NPD DECISIONS: AN INVESTIGATION OF DECISION-MAKERS’ AFFECTIVE STATES

Decision-makers often struggle to terminate unsuccessful new product development (NPD) projects, so that escalating commitment occurs. Although research shows that rational and intuitive decision-making styles (DMS) as well as a decision-maker’s affective state determines the performance of NPD decisions, little is known about their influences on escalating commitment. By applying the affect infusion model in an experimental study, we investigate how a decision-maker’s affective state influence their escalating commitment by focusing on their use of a rational and an intuitive DMS. Our findings, based on 366 respondents, show that a rational DMS is unable to reduce commitment escalation. Surprisingly, an intuitive DMS is able to reduce a decision-maker’s commitment in the case of a positive affect, whereas a rational DMS increases their commitment in the case of a negative affect. Thus, our interdisciplinary research on affect and decision-making extends and contributes to research into decision-making during the NPD process as well as into escalating commitment.

Screenomics: A Framework to Capture and Analyze Personal Life Experiences and the Ways that Technology Shapes Them

Digital experiences capture an increasingly large part of life, making them a preferred, if not required, method to describe and theorize about human behavior. Digital media also shape behavior by enabling people to switch between different content easily, and create unique threads of experiences that pass quickly through numerous information categories. Current methods of recording digital experiences provide only partial reconstructions of digital lives that weave - often within seconds - among multiple applications, locations, functions and media. We describe an end-to-end system for capturing and analyzing the "screenome" of life in media, i.e., the record of individual experiences represented as a sequence of screens that people view and interact with over time. The system includes software that collects screenshots, extracts text and images, and allows searching of a screenshot database. We discuss how the system can be used to elaborate current theories about psychological processing of technology, and suggest new theoretical questions that are enabled by multiple time scale analyses. Capabilities of the system are highlighted with eight research examples that analyze screens from adults who have generated data within the system. We end with a discussion of future uses, limitations, theory and privacy.

Review and Recommendations for Integrating Mediation and Moderation

Usage of models integrating mediation and moderation is on the rise in the organizational sciences. While moderation and mediation are fairly well understood by themselves, additional complexities emerge when combining them. Some guidance exists regarding the empirical testing of such models, but this guidance is widely misunderstood. Furthermore, very little guidance exists regarding the theoretical justification of such models. This article offers a checklist of recommendations for the presentation, justification, and testing of models integrating mediation and moderation and compares these to what is actually being done via a review of empirical papers in top-tier journals.

Can "the voices in the car" persuade drivers to go green?: effects of benefit appeals from in-vehicle voice agents and the role of drivers' affective states on eco-driving

The present research investigated the possibility of using an in-vehicle voice agent to promote eco-driving. Considering that both types of benefit appeals--egoistic (emphasizing benefits to the self) and altruistic (emphasizing benefits to others)--could be employed to promote eco-driving behavior, we explored the effects of benefit appeals delivered by an in-vehicle voice agent on driving performance. In particular, we tested whether and how the valence (positive vs. negative) of drivers' affective states moderates the effects, drawing on the functionalist affect-cognition framework, which has theorized that positive affect leads people to focus more on self-interest, whereas negative affect leads people to become more sensitive to social norms. An experiment was conducted in which participants, after undergoing affect (happy vs. sad) elicitation, received messages (egoistic vs. altruistic) promoting eco-driving from an in-vehicle voice agent while performing a simulated driving task. Results were partially consistent with the functionalist affect-cognition framework. Happy participants performed better on eco-driving when they were exposed to egoistic appeals than to altruistic appeals. On the other hand, the driving performance data from sad participants did not yield a significant difference between the egoistic condition and the altruistic condition. Participants' driving performance data further revealed that the joint effects of benefit appeals and affective states on safe driving performance mirrored the joint effects on eco-driving performance, confirming a close relationship between the two driving behaviors. Theoretical and practical implications for the use of in-vehicle voice agents and benefit appeals in promoting eco-driving and safe driving are discussed.

Older and wiser? An affective science perspective on age-related challenges in financial decision making

Financial planning decisionss are fundamentally affective in nature; they are decisions related to money, longevity and quality of life. Over the next several decades people will be increasingly responsible for managing their own assets and investments, and they will be subject to the affective influences on active, personal decision-making. Many of these crucial decisions are made and revised across the lifespan, including when to buy or sell a home, how to save for childrens' education, how to manage healthcare costs, when to retire, how much to save for retirement and how to allocate retirement funds. As average life expectancy increases, many retirees will be faced with inadequate savings to live comfortably until the end of their lives. In the current article, we examine the problems of and potential solutions to inadequate financial planning through the lens of affective science, with an emphasis on how brain-based changes in affective processing with age might contribute to the challenge of financial planning.