Focusing and framing of risky alternatives
Focusing and framing of risky alternatives
No Thumbnail Available
Files
There are no files associated with this item.
Date
2019
Authors
Wenzel, Tobias
Editors
Journal ISSN
Electronic ISSN
ISBN
Bibliographical data
Publisher
Series
DOI (citable link)
International patent number
Link to the license
EU project number
Project
Open Access publication
Collections
Title in another language
Publication type
Journal article
Publication status
Published
Published in
Journal of Economic Behavior & Organization ; 159 (2019). - pp. 289-304. - Elsevier. - ISSN 0167-2681. - eISSN 1879-1751
Abstract
This paper develops a theory of focusing and framing in an intertemporal context with risky choices. We provide a selection criterion between existing theories of focusing by allowing a decision maker to choose her frame such that her attention is either drawn to salient events associated with an option or to the expected utilities an option yields in different time periods. Our key assumption is that a decision maker can choose her frame in a self-serving manner. We predict that the selected frame induces overoptimistic actions in the sense that subjects underrate downside risk but overrate upside risk and accordingly reveal overoptimistic choices. Hence, our theory can explain phenomena such as excessive harmful consumption (smoking, unhealthy diet) and risky investments (entrepreneurship, lotteries, gambling) in one coherent framework. Notably, overoptimistic actions are not universal, but have plausible limits. We characterize under which situations overoptimistic actions are most likely to occur and under which circumstances choices should be rational or even pessimistic.
Summary in another language
Subject (DDC)
330 Economics
Keywords
Focusing, Salience, Framing, Overoptimism
Conference
Review
undefined / . - undefined, undefined. - (undefined; undefined)
Cite This
ISO 690
DERTWINKEL-KALT, Markus, Tobias WENZEL, 2019. Focusing and framing of risky alternatives. In: Journal of Economic Behavior & Organization. Elsevier. 159, pp. 289-304. ISSN 0167-2681. eISSN 1879-1751. Available under: doi: 10.1016/j.jebo.2017.12.020BibTex
@article{DertwinkelKalt2019Focus-53483, year={2019}, doi={10.1016/j.jebo.2017.12.020}, title={Focusing and framing of risky alternatives}, volume={159}, issn={0167-2681}, journal={Journal of Economic Behavior & Organization}, pages={289--304}, author={Dertwinkel-Kalt, Markus and Wenzel, Tobias} }
RDF
<rdf:RDF xmlns:dcterms="http://purl.org/dc/terms/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#" xmlns:bibo="http://purl.org/ontology/bibo/" xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#" xmlns:foaf="http://xmlns.com/foaf/0.1/" xmlns:void="http://rdfs.org/ns/void#" xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > <rdf:Description rdf:about="https://kops.uni-konstanz.de/server/rdf/resource/123456789/53483"> <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2021-04-26T09:40:26Z</dcterms:available> <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/> <dc:contributor>Dertwinkel-Kalt, Markus</dc:contributor> <foaf:homepage rdf:resource="http://localhost:8080/"/> <bibo:uri rdf:resource="https://kops.uni-konstanz.de/handle/123456789/53483"/> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dc:language>eng</dc:language> <dcterms:rights rdf:resource="https://rightsstatements.org/page/InC/1.0/"/> <dcterms:abstract xml:lang="eng">This paper develops a theory of focusing and framing in an intertemporal context with risky choices. We provide a selection criterion between existing theories of focusing by allowing a decision maker to choose her frame such that her attention is either drawn to salient events associated with an option or to the expected utilities an option yields in different time periods. Our key assumption is that a decision maker can choose her frame in a self-serving manner. We predict that the selected frame induces overoptimistic actions in the sense that subjects underrate downside risk but overrate upside risk and accordingly reveal overoptimistic choices. Hence, our theory can explain phenomena such as excessive harmful consumption (smoking, unhealthy diet) and risky investments (entrepreneurship, lotteries, gambling) in one coherent framework. Notably, overoptimistic actions are not universal, but have plausible limits. We characterize under which situations overoptimistic actions are most likely to occur and under which circumstances choices should be rational or even pessimistic.</dcterms:abstract> <dc:contributor>Wenzel, Tobias</dc:contributor> <dc:rights>terms-of-use</dc:rights> <dc:creator>Wenzel, Tobias</dc:creator> <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/> <dc:creator>Dertwinkel-Kalt, Markus</dc:creator> <dcterms:title>Focusing and framing of risky alternatives</dcterms:title> <dcterms:issued>2019</dcterms:issued> <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2021-04-26T09:40:26Z</dc:date> </rdf:Description> </rdf:RDF>
Internal note
xmlui.Submission.submit.DescribeStep.inputForms.label.kops_note_fromSubmitter
Examination date of dissertation
Method of financing
Comment on publication
Alliance license
Corresponding Authors der Uni Konstanz vorhanden
International Co-Authors
Bibliography of Konstanz
No
Refereed
Yes