van der Heijden, Eline Klein, Tobias J. Müller, Wieland Potters, Jan
Year of Publication:
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7085
We confront a representative sample of one 1,102 Dutch individuals with a series of incentivized investment decisions and also elicit their time preferences. There are two treatments that differ in the frequency at which individuals decide about the invested amount. The low frequency treatment stimulates decision makers to frame a sequence of risky decisions broadly rather than narrowly. We find that the framing effect is significantly larger for impatient than for patient individuals. This result is robust to controlling for various economic and demographic variables and for cognitive ability.
framing choice under risk time preference experiment