Perceived social context and risk preference: A re-examination of framing effects in a life-death decision problem
Article first published online: 2 OCT 2006
Copyright © 1995 John Wiley & Sons, Ltd.
Journal of Behavioral Decision Making
Volume 8, Issue 4, pages 279–293, December 1995
How to Cite
Wang, X. T. and Johnston, V. S. (1995), Perceived social context and risk preference: A re-examination of framing effects in a life-death decision problem. J. Behav. Decis. Making, 8: 279–293. doi: 10.1002/bdm.3960080405
- Issue published online: 2 OCT 2006
- Article first published online: 2 OCT 2006
- Manuscript Accepted: 26 MAR 1995
- Manuscript Received: 15 AUG 1994
- risk preferences;
This study examines the effects of perceived group context on subjects risk attitudes and their sensitivity to the framing of choice outcomes in a ‘life-death’ decision problem. It seeks to uncover the psychological mechanisms underlying decision-making biases by systematically manipulating the decision context in which the ‘life-death’ problem was described. The study revealed that subjects risk preferences varied as a function of the experimental manipulations. Previously observed reversals in preferences (framing effects) appeared in large-group contexts and disappeared in small-group and family contexts. When considering the fate of small groups, subjects unambiguously favored the probabilistic outcome, no matter how the ‘life-death’ decision problem was framed. The empirical data obtained from the present study suggest that human choice patterns are behaviorally distinguishable across large-group, small-group, and family social contexts.