Framing Effects and Information Processing of Individual Investors
The framing of financial products can strongly influence information processing and thus risk-taking behavior of individual investors. For example, investment portfolios can be presented in aggregated or segregated framing, meaning that they can display either the overall distribution or the single investments of the investment portfolio itself. Two experimental studies demonstrate that correlation and variance of investment portfolios as well as the type of information processing have great influence on the preferred framing. If the variance of the portfolio is extremely high, the aggregated presentation mode is no longer significantly preferred. Framing effects are also mainly observed for individuals who decide intuitively rather than analytically.
Martina Steul (2005) ,"Framing Effects and Information Processing of Individual Investors", in E - European Advances in Consumer Research Volume 7, eds. Karin M. Ekstrom and Helene Brembeck, Goteborg, Sweden : Association for Consumer Research, Pages: 47-48.
Martina Steul, University of Leipzig
E - European Advances in Consumer Research Volume 7 | 2005
D12. Future Decisions and Temporal Contiguity Cues: When Absence of Temporal Contiguity Cues Increases Online Reviews’ Persuasiveness.
Francesco Zanibellato, Ca' Foscari University, Venice, Italy
When Does Slow Mean Luxurious?: The Effect of Product Motion Speed in Brand Communications on Status Perceptions
SungJin Jung, INSEAD, Singapore
David Dubois, INSEAD, France
Improving Customer Satisfaction Online through Valence Matching
Hannah Perfecto, Washington University, USA
Leif D. Nelson, University of California Berkeley, USA