Narrow framing in risk aversion experiments: Further evidence from a wide replication

Gu, Ariel, Walker, Matthew J. and Yoo, Hong Il (2025) Narrow framing in risk aversion experiments: Further evidence from a wide replication. Journal of Applied Econometrics. ISSN 0883-7252

Preview

PDF (Asset_Integration_and_Narrow_Framing_Final) - Accepted Version Available under License Creative Commons Attribution. Download (538kB) | Preview

Abstract

When evaluating risky options in experimental settings, do individuals integrate background finances with experimental earnings? Andersen et al. (2018, REStat) combine experimental data on lottery choices and administrative data on personal wealth in Denmark to show that individuals evaluate experimental payoffs in isolation. We replicate this finding using data from three experiments and survey-based measures of background finances for a representative Dutch sample. We show that the finding based on personal wealth extends to household wealth, personal income, and household income. The finding is also robust to different elicitation instruments, incentive structures, stake sizes, and interpersonal behavioral heterogeneity.

Item Type:	Article
Additional Information:	Data Availability Statement: The data that support the findings of this study are openly available in the Journal Data Archive at https://doi.org/10.15456/jae.2025216.1251603116. Acknowledgement: In this paper, we make use of data from the LISS panel (Longitudinal Internet Studies for the Social Sciences) managed by the non-profit research institute Centerdata (Tilburg University, the Netherlands). We are grateful to Centerdata for providing access to the data, and Jens Prufer for bringing the LISS panel to our attention. We thank Heather Anderson, two anonymous reviewers, and members of the Newcastle University Applied Micro research group for helpful comments.
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Science > Research Groups > Statistics
Depositing User:	LivePure Connector
Date Deposited:	14 Aug 2025 15:30
Last Modified:	30 Sep 2025 16:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/100146
DOI:	10.1002/jae.70010

Downloads

Actions (login required)

View Item