There Is Light At the End of the Tunnel: Helping Consumers Avoid Financial Decision Making Biases By Inducing Broad Bracketing

Krishna Savani, Columbia University, USA
Elke Weber, Columbia University, USA
Eric Johnson, Columbia University, USA
Many financial decision-making biases arise from consumers’ tendency to consider decisions in isolation. To induce consumers to spontaneously bracket multiple decisions together, we asked them to identify all the choices that a person makes in a short duration. The manipulation reduced risk aversion, loss aversion, ambiguity aversion, and inter-temporal impulsivity.
[ to cite ]:
Krishna Savani, Elke Weber, and Eric Johnson (2011) ,"There Is Light At the End of the Tunnel: Helping Consumers Avoid Financial Decision Making Biases By Inducing Broad Bracketing", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 180.