The Influence of Framing on Willingness to Pay As an Explanation of the Uncertainty Effect

Yang Yang, Carnegie Mellon University
Joachim Vosgerau, Tilburg University, The Netherlands
George Loewenstein, Carnegie Mellon University, USA
We show that the framing of a risky prospect substantially influences WTP. Specifically, we find that “lottery”, “raffle”, “gamble” and “coin flip” frames significantly reduced WTP compared to “uncertain gift certificate” and “voucher” frames. WTA, however, is not affected by framing. We test a variety of explanations for this effect.
[ to cite ]:
Yang Yang, Joachim Vosgerau, and George Loewenstein (2013) ,"The Influence of Framing on Willingness to Pay As an Explanation of the Uncertainty Effect", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.