Choices 1 - environmental influences on decision making

What are two primary environmental influences on decision-making

Framing effects (informational environment)

temporal discounting (physical/temporal environment).

Prospect Theory and decision making

Individuals evaluate outcomes relative to a reference point,

framing them as gains or losses rather than absolute values.

What are the three types of framing identified by Levin et al.?

Attribute framing

risky-choice framing

goal framing.

loss aversion in the context of decision making

perceive losses as more impactful than equivalent gains.

'isolation effect'

The tendency for individuals to focus on the differences between options rather than considering the full information available.

What did the Chaiken and Meyerowitz study on breast self-examination (BSE) demonstrate?

Participants who read pamphlets highlighting the negative consequences of not performing BSE showed more positive attitudes and higher compliance than those who read gain-framed or neutral messages.

loss framing --> more compliance and better attitudes towards task

limitation of framing effects according to O'Keefe (2012)?

A meta-analysis revealed that framing effects are inconsistent and highly dependent on the specific context.

How does framing challenge Expected Utility Theory?

It suggests that choices are not based on stable, absolute utility

instead malleable based on how information is presented.

Intertemporal Choice Theory

How individuals make decisions involving trade-offs between costs and benefits occurring at different points in time.

What are the two types of rewards involved in intertemporal choice?

Smaller immediate rewards and larger delayed rewards.

What is the core assumption of the Discounted Utility Model (Samuelson, 1937)?

Future rewards are discounted over time, meaning individuals assign less weight to utility the further into the future it occurs.

According to Frederick et al. (2002), what is the general human tendency regarding time preference?

People show a strong preference for immediacy, preferring rewards sooner rather than later.

loss aversion

The strong tendency to regard losses as considerably more important than gains of comparable magnitude

tendency to take steps to avoid possible loss.

What is the difference between 'time discounting' and 'time preference'?

Time discounting refers to the mathematical reduction of value over time,

time preference refers to the individual's behavioral inclination toward immediate vs. delayed rewards.

Kahneman and Tversky

prospect theory

levin et al.

types of framing

changing wording or presentation --->

changes in choice

Chaiken and Meyerowitz

breast examination study

O' keef 2012

meta-analysis

Samuelson 1937

Discounted utility model

Frederick et al 2002

time preference for immediacy

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