...The relationship between risk-adverse and risk-seeking in the framing effect Nina Lesani Douglas College 300065965 Dr. Hajera Rostam Psychology 1200-003 July 10 th, 2014 Relationship between risk-adverse and risk-seeking in the framing effect The way information is presented can greatly impact one’s judgments and decisions on the received information. For instance, the presentation of a cancer treatment in terms of mortality or survival may significantly influence one’s decision whether or not to accept the treatment. It’s important, therefore, to understand the processes behind people’s susceptibility to information presentation and how this may influence their judgements and decisions. The presentation of ideas in different manners influences the way the audience perceives the idea and this phenomenon is called “framing”, as introduced by Tversky and Kahneman (1981), who specifically studied its effects in the decision making preferences of people. The framing effect, such as the one found in the Asian disease problem, is often explained by using Tversky and Kahnman’s (1979) prospect theory. This theory is based on the idea that people value gains and losses differently, and, as such, will base their decisions on perceived gains rather than perceived avoided losses. Thus, if a person were given two equal choices, one expressed in terms of possible gains and the other in possible avoided losses, people would choose the former; even if both achieve the same end results...
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...March 21, 1997, in the United States, hundreds of hispanics wait in line at their local movie theater to watch the much anticipated film Selena (1995). For many hispanics, being able to go to the theater and see a film that showcased someone they admired in a positive light was like a breath of fresh air (Vincent). “In a world constantly bombarded with images of Hispanics as gang members, pregnant teens and high school dropouts, Selena was to her fans and to the Hispanic community a...role model who focused a spotlight on the finest points of being Hispanic”(Vincent). The media and its under/misrepresentation of people of color can serve to promote unconscious and implicit bias among the general population. In addition, this misrepresentation...
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...ATHK1001 ANALYTIC THINKING ASSIGNMENT 1, 2014 Student Name: Daxun Xu Student ID: 440510101 Word count: 744 words Introduction Ultimatum game has received extensive interests in behavioural economics. It is a common social phenomenon, i.e. customer asks for a discount price on certain goods or buys them somewhere else; employees want better salary package or resign for better job. Most of the studies are under gain framework, which means the accepters can either something or nothing. Meanwhile, it is suggested that the framing of the study (gain and loss) could affect the outcome (ATHK1001, 2014). Zhou and Wu (2011) have conducted a study which asked participants to spilt either a gain or a loss of 10 Chinese Yuan in both gain and loss frames to investigate the effects of framing and explanations of the outcomes. Their study consists of three experiments while experiment 1 is made of two sub-experiments. They found that loss framing has higher rejection rates in all situations and they conclude that loss frame for the UG was like a negatively framed negotiation which makes it harder to come to a compromise (Zhou and Wu, 2011). They suspected that loss framing is associated with unfairness. To examine their finding, ATHK 1001 has conducted a similar survey to validate Zhou and Wu’s study. Hypotheses A series of null hypotheses have been used. The first hypothesis (H1) proposed that gain frame condition makes proposers to make more unfair offers. The second hypothesis...
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...especially powerful during times of war, when the nation’s passions are running high and the lives of our country’s young men and women are on the line. The justification to invade Iraq was based on flimsy intelligence provided by the Bush administration. Leading up to the invasion, news reporters working with this same flimsy information, presented the American people with the Bush administrations justifications for war. In this paper I will show how the way in which an argument is framed can sway public opinion. My topic will specifically examine how the justification for the Iraq war was framed by the Bush administration. In order to do so, I will explain how a majority of American people get their news. I will also cite examples where the framing was so effective that people would have trouble coming to terms with the fact that they were misled, even after being presented with factual evidence. Before we get into the specific questions about the war, we need to cover how and why we get information from the media. So how do Americans get their news information? According to a recent Gallup poll by Lydia Saad, 55% of American’s obtain their news from television news networks. The next closest challenger is the internet at 21%. Not even .5% of people claimed to obtain their news independently (Saad 2013). Why do American’s rely on the news media for their news? The answer is simple; most individual people cannot independently gather and verify news on...
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...identified by Higgs and Rowland. These areas may affect the favorable change of businesses, which can result in both organizations and leaders achieving the goals more effectively. Therefore, by involving others in understanding that business should change, identify problems and solutions to ensure a successful change, so that leaders can be changed better. By identifying three broad sets of leadership behavior, the authors argued that the leader-centric behaviors (Shaping) had a negative impact on change success. This means that individual leaders focus on the communication and actions. But on the other hand, Framing and Creating behaviors were positively related to successful implementation of change. Relating to this point, the research by Sparrowe (2005) leadership is determined to help followers to develop their commitment, potentiality and achieve goals. Framing and Creating behavioral sets identified by Higgs and Rowland (2005) play a significant role in successful implementing of change across the most contexts. This idea may be linked by Stacey and Griffin (2005) who find leadership as a complex process, and argue that it is through a lot of interactions that...
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...Slide 5.1 Chapter 5 Managing the organisation: Managerial function, tasks, processes and competences Watson, Organising and Managing Work, 2nd edition © Pearson Education Limited 2006 Slide 5.2 Moving beyond S-C orthodoxy: OM as a Relational Process • Remember in Chapter 1, we discussed that in OM, the center of concerns is ‘management of work”, NOT ‘management of people’ or ‘management of systems’ • The notion of S-C view in managerial work is control, organising, command and managers work towards organisational goals instead of the manager’s own interest. Watson, Organising and Managing Work, 2nd edition © Pearson Education Limited 2006 Slide 5.3 Table 5.1 A systems-control framing of managerial work Watson, Organising and Managing Work, 2nd edition © Pearson Education Limited 2006 Slide 5.4 Process-Relational View • A sets of work arrangements involving relationships, understandings and process which involve human cooperation and the use of technologies to achieve certain tasks. • Nevertheless the relations and patterns of cooperation do not come naturally, it needs to be shaped or ‘managed’ Watson, Organising and Managing Work, 2nd edition © Pearson Education Limited 2006 Slide 5.5 Process-Relational View • Shaping and reshaping, negotiating and renegotiating, mediating, persuading, exchanging and trading will continually have to occur if the organisation is going to complete the tasks and to continue into the...
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...decisions directs both normative and descriptive questions. Study of decision making is mainly concentrated on options of monetary outcomes and probabilities. The psychophysics of value in the province of gains and losses cause risk aversion and risk seeking respectively. The outcomes of decision and the probabilities of these outcomes characterized the risky prospects and these can be framed in different ways but this framing of outcomes contradicts with the principle of Invariance of Rational choice which states that the changes in the explanation of outcomes should not adjust the preference order. We can shift preference from risk aversion to risk seeking and vice-versa with the change of words of probable outcomes. The presence of non-linearity between value function and people’s capability to calculate choices in the relation to the reference point causes evaluation of outcomes is affected by formulation effects. The psychophysics of chances leads to overweighting of sure things when these are compared with the events of moderate or high probability, this phenomenon is known as Pseudo-Certainty effect. This effect has impact that an event which is absolutely uncertain is weighted like it was certain. Mental accounting is a process in which people sets up a mental account that list the pros and cons related with the choice parallel to a multiattribute reference state. This process also explains the irregularities in the behavior of consumers. Combination of adaptation and loss...
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...The Qualitative Report Volume 8 Number 3 September 2003 447-461 http://www.nova.edu/ssss/QR/QR8-3/mccaslin.pdf The Five-Question Method For Framing A Qualitative Research Study Mark L. McCaslin University of Idaho, Idaho Falls, Idaho, USA Karen Wilson Scott University of Idaho, Idaho Falls, Idaho, USA The Five-Question Method is an approach to framing Qualitative Research, focusing on the methodologies of five of the major traditions in qualitative research: biography, ethnography, phenomenology, grounded theory, and case study. Asking Five Questions, novice researchers select a methodology appropriate to the desired perspective on the selected topic. The Method facilitates identifying and writing a Problem Statement. Through taking a future perspective, the researcher discovers the importance and direction of the study and composes a Purpose Statement. The process develops an overarching research question integrating the purpose and the research problem. The role of the researcher and management of assumptions and biases is discussed. The Five-Question Method simplifies the framing process promoting quality in qualitative research design. A course outline is appended. Key words: Qualitative Research, Five-Question Method, Biography Research, Phenomenology Research, Grounded Theory Research, Case Study Research, and Ethnography Research Introduction Planning a qualitative study for the first time tends to be an intimidating venture for graduate students just entering...
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...By Evelyn Thai Al Jazeera's logo Since its inception, Al Jazeera and the space the network occupies in the alternative media order have been heavily contested. The network’s editorial and journalistic decisions position Al Jazeera as an alternative news source and some see the station as a powerful force against global hegemonies. In “Hegemonic No More: Western Media, the Rise of Al-Jazeera, and the Influence of Diverse Voice,” Philip Seib argues that Al Jazeera’s success signals “an end to the near monopoly in global news that American and other Western media had long enjoyed”. (Seib 2005) Others heavily contest the alternative media designation citing the network’s structure, organization, and funding; Adel Iskandar argues that much of the alterity that characterizes Al Jazeera is manufactured and “resembles the marketing strategy for a corporate brand”. (Iskandar 2006) Situating Al Jazeera within the alternative media order has been difficult in part because “the nature and definitions of alternative media have often been contested terrain” (ibid.). Although fluid, most definitions of alternative media focus on the challenge alternative sources pose to existing narratives and journalistic practices. These definitions of alterity stipulate that the media should have some if not all of the following characteristics: connections with social movements, facilitating social communication and change, the ability to instigate activism, challenge to the structures of power, wide...
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...BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BOOK REVIEW OF : BOOK REVIEW OF : PREPARED BY : ASHISH SHARMA PREPARED BY : ASHISH SHARMA 2014 2014 Behavioral Finance and Wealth Management Author Information “Michael M. Pompian, CFA, CFP, is a partner at Mercer Investment Consulting, a firm serving institutional and private wealth clients. Prior to joining Mercer, he was a wealth management advisor with Merrill Lynch and PNC Private Bank, and served on the investment staff of a family office. Pompian is a Chartered Financial Analyst (CFA), a Certified Financial Planner (CFP), and a Certified Trust Financial Advisor (CTFA). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Security Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA in finance from Tulane University. Pompian is a regular speaker on the subject of behavioral finance and has published several articles on the subject. He is married with three sons and can be reached at michael.pompian@mercer.com. “ Michael M. Pompian describes various biases which we can see in human beings , also tells about various experiments on human beings in his book “ BEHAVIOURAL FINANCE AND WEALTH MANAGEMENT “ and tells “HOW TO BUILD OPTIMAL PORTFOLIOS THAT ACCOUNTS FOR INVESTOR BIASES “ The book is published...
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...2nd Summative Test Practice Exam 2011-2012 1.|Your psychology professor has announced that the next test will assess your understanding of sensation and perception. When you receive the test, however, you find that very few questions actually relate to these topics. In this instance, you would be most concerned about the ________ of the test.| A)|reliability| B)|factor analysis| C)|standardization| D)|validity| E)|normal distribution| 2.|One of the most consistently damaging teratogens is:| A)|epinephrine.| B)|testosterone.| C)|serotonin.| D)|dopamine.| E)|alcohol.| 3.|The best predictor of a couple's marital satisfaction is the:| A)|frequency of their sexual intimacy.| B)|intensity of their passionate feelings.| C)|ratio of their positive to negative interactions with each other.| D)|experience or nonexperience of a prior marriage.| 4.|Compared to authoritarian parents, authoritative parents are likely to be:| A)|more conservative.| B)|less educated.| C)|more responsive.| D)|less trusting.| 5.|The relative lack of neural interconnections in the brain at the time of birth most directly contributes to:| A)|poor memory for early life experiences.| B)|decreasing responsiveness with repeated stimulation.| C)|an insecure attachment to one's primary caregiver.| D)|the fear of strangers commonly displayed by infants.| 6.|The fact that many happy and well-adjusted adults were once rebellious and unhappy as adolescents is most relevant to the issue...
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...Week 6 Lecture 1: Decision Making Individuals Definition of decision making: it is a process of making a choice among several action alternatives. It involves a commitment of resources to some course of action. Assumptions of rational decision making model: Problem clarity: clearly defined and unambiguous Know options: identify all relevant criteria and viable alternatives in an unbiased manner Clear preferences: the criteria and alternatives can be ranked and weighted. Constant preferences: constant decision criteria and weights assigned to them are stable over time No time/cost constraints: full information is available Maximum payoff: the choice alternative will yield the highest economic value (a rational decision making process: define the problem—identify the criteria—allocate weights to the criteria—develop alternatives—evaluate the alternatives—select the best alternative Types of judgments and decisions: Normative: how X should be chosen/ judged in optimal/ rational conditions Descriptive: how X actually gets chosen/ judged The reasons why descriptive decisions are different from normative decisions: Bounded rationality: time cost constraints; incomplete information; perceptiual errors in obtaining information; cognitive load in information retention and performing caluculations Bounded decision making: We seek solutions that are the best given the information that is available; that are satisfactory (good enough) We satisfice rather than...
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...Chapter 2 A Behavioral Finance Approach to Decision Making in Entrepreneurial Finance Rassoul Yazdipour By ‘uncertain’ knowledge, let me explain,… We simply do not know. J.M. Keynes (1937) Humans have an additional capability that allows them to alter their environment as well as respond to it. This capacity both creates and reduces risk. Paul Slovic (1987) All risk that is acted upon must be perceived risk because perception is based upon sensory data. We can only sense the ‘real world’ because we have no other way of being informed. Robert Olsen (2010) Understanding a problem is half of the solution Unknown Abstract Three central decisions in entrepreneurship and entrepreneurial finance – entry/seed funding, financing/investment, and growth/exit – are discussed and case is made for applying the behavioral finance theories and concepts to better understand the involved decision processes, and consequently, to help improve the decisionmaking process for both entrepreneurs and venture capitalists. The behavioral finance approach is important because the traditional finance has remained silent on the first issue, and the Agency Theory (financial contracting), which is effectively the only theory that is applicable to issues in entrepreneurial finance, has produced mixed empirical results. (See for example Bitler et al. [Bitler MP, Moskowitz T J, VissingJorgensen A (2009) Why do entrepreneurs hold large ownership shares? Testing agency theory using entrepreneur...
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...INTRODUCTION: Background of the Study: The rising popularity of Korean Culture throughout the world is called Korean Wave. The Korean popular culture which spread mainly through the mass media is now enjoying high popularity outside Korea and this is how the Korean Wave occurs (Yu,2008). The phenomenal Korean sensation is describe from another term called Hallyu, this is a Korean pronunciation of Korean Wave which is defined by Korean Tourism Organization (2004) as the recent cultural phenomenon of South Korean pop culture sweeping throughout the world (Kim & Ryoo, 2007). Korean Wave (Hallyu) mainly consists of television dramas, film, pop music, movie stars animation and comics including mobile content like cell phones and iPods, video or computer games, as well as the latest fashion, food, home appliances and cosmetics, assertively expanding to things like dance, sculpture, painting, cuisine, plastic surgery, tourism and language (http://jakartapost.com/). In this study I'm just going to focus on the Korean Wave effect in Filipino Youth's preference in music, television dramas and in their taste of fashion. The youths are the one who are most influenced by the Korean Wave and one of those are the Filipino Youth. The new generation today is different and they are easily captured to the things around them. These youths are exposed to the different kinds and genres of music, television dramas and also in their taste of fashion. Now and then, the taste of music, movies...
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...Prohibition. • Loophole: nothing about the act included DRINKING alcohol • Loophole: Since Prohibition went into effect a full year after the 18th Amendment's ratification, many people bought cases of then- legal alcohol and stored them for personal use . • Loophole: Alcohol consumption was ok if it was prescribed by a doctor. Needless to say, large numbers of new prescriptions were written for alcohol. * Stockmarket crash changes public opinion of alcohol consumption because legal manufacturing would create jobs The Gibson Girl The Gibson Girl was tall, slender, and full-chested. She had an exaggerated S-curve torso hape achieved by wearing a corset. Her neck was thin and her hair piled high upon her head, with curls framing her face. Wigs& Surrealism: Surrealist headwear wasn’t limited to hats. Wigs played a major role in the movement. Elsa Schiaparelli, the surrealist couturiere of the 2me period, was one of the first to make surrealist wigs. She commissioned many of these by Antoine. Robe of Style An alternative silhouette available to women was the Robe de Style, which was inspired by wide-skirted Spanish styles of the early 1600s, and originated by designer Jeanne Lanvin. Robe de Style Characteristics: • Full skirt • Drop waist • Mostly a fitted bodice • Skirt was supported by petticoats or panniers • sometimes imitated by Callot Soures • Lanvin also designed children’s clothing. Mass Production of clothing- Civil war ...
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