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Choices, values, frames
Abstract
We discuss the cognitive and the psy- chophysical determinants of choice in risky and risk- less contexts. The psychophysics of value induce risk aversion in the domain of gains and risk seeking in the domain of losses. The psychophysics of chance induce overweighting of sure things and of improbable events, relative to events of moderate probability. De- cision problems can be described or framed in multiple ways that give rise to different preferences, contrary to the invariance criterion of rational choice. The pro- cess of mental accounting, in which people organize the outcomes of transactions, explains some anomalies of consumer behavior. In particular, the acceptability of an option can depend on whether a negative outcome is evaluated as a cost or as an uncompensated loss. The relation between decision values and experience values is discussed. Making decisions is like speaking prose—people do it all the time, knowingly or unknowingly. It is hardly surprising, then, that the topic of decision making is shared by many disciplines, from mathematics and statistics, through economics and political science, to sociology and psychology. The study of decisions ad- dresses both normative and descriptive questions. The normative analysis is concerned with the nature of rationality and the logic of decision making. The de- scriptive analysis, in contrast, is concerned with peo- ple's beliefs and preferences as they are, not as they should be. The tension between normative and de- scriptive considerations characterizes much of the study of judgment and choice. Analyses of decision making commonly distin- guish risky and riskless choices. The paradigmatic example of decision under risk is the acceptability of a gamble that yields monetary outcomes with specified probabilities. A typical riskless decision concerns the acceptability of a transaction in which a good or a service is exchanged for money or labor. In the first part of this article we present an analysis of the cog- nitive and psychophysical factors that determine the value of risky prospects. In the second part we extend this analysis to transactions and trades. Risky Choice Risky choices, such as whether or not to take an umbrella and whether or not to go to war, are made without advance knowledge of their consequences. Because the consequences of such actions depend on uncertain events such as the weather or the opponent's resolve, the choice of an act may be construed as the acceptance of a gamble that can yield various out- comes with different probabilities. It is therefore nat- ural that the study of decision making under risk has focused on choices between simple gambles with monetary outcomes and specified probabilities, in the hope that these simple problems will reveal basic at- titudes toward risk and value. We shall sketch an approach to risky choice that
... Consumer behavior is significantly shaped by perceived risk (Kim et al. 2023). Grounded in perceived risk theory, individuals assess potential negative outcomes and uncertainties by factoring in their perceived lack of control (Bauer 1960;Kahneman and Tversky 1984). In addition, perceived behavioral control, an idea rooted in the Theory of Planned Behavior, encompasses how people evaluate their capacity to engage in a behavior, taking into account resources, skills, and environmental constraints (Ajzen 1991). ...
... Strict policy features, such as higher cancellation fees, longer cancellation notice period requirements, and more complex cancellation methods, subsequently elevate perceived risk. As risk aversion prompts individuals to prioritize minimizing potential losses (Kahneman and Tversky 1984), policy strictness may influence the intention to book reservations. Lenient policy features, such as lower cancellation fees, shorter cancellation notice period requirements, and easier cancellation methods, mitigate perceived risk. ...
... The findings indicate that strict features, such as higher fees or extended notice periods, can reduce no-shows (Chen et al. 2011;Li et al. 2019); however, related perceived risk may prevent bookings (Kahneman and Tversky 1984;Riasi et al. 2018). Consequently, although these policies protect operational resources, they may undermine the goal of attracting reservations. ...
This study addresses the persisting issue of restaurant reservation no‐shows by applying the availability heuristic principle to analyze booking behaviors. Three experiments identified cancellation policy features and factors influencing booking and no‐show behaviors. Findings confirmed that a cancellation barrier (i.e., strict policy and complex cancellation method) decreases no‐show intentions and negatively affects booking intentions. This research suggests that a lenient cancellation policy, an easy cancellation method, and an awareness campaign can encourage positive guest booking behavior and reduce no‐shows. Applying the availability heuristic principle to restaurant management, the current research enhances the understanding of psychological factors affecting guest decisions and identifies effective strategies to reduce no‐shows while supporting favorable booking behavior.
... This is also consistent with theoretical and empirical research from social psychology on social influence and belief change, which shows that the framing of information can shift beliefs in different directions. Negative biases are more likely to emerge when information emphasizes risks or undesirable outcomes, while positive biases frequently occur when information highlights benefits or successes (Kahneman & Tversky, 1984;Nelson, Oxley, & Clawson, 1997). ...
... Contextual information allows individuals to integrate new knowledge with existing beliefs and perceptions (Mann & Ferguson, 2015), potentially biasing moral acceptability judgments in either positive or negative directions (Cone et al., 2017). Social psychology research further highlights the impact of contextual framing on decision-making, showing that framing risks often results in negative biases, whereas highlighting benefits or successes leads to positive biases (Kahneman & Tversky, 1984;Nelson , 1997). Additionally, our hypotheses draw on research in source credibility and persuasion, which has indicated that information is more impactful from a successful and credible source (Smith, De Houwer, & Nosek, 2013). ...
... This is consistent with research showing that relevant information shapes moral understanding (Andrejević et al., 2020;Mann & Ferguson, 2015). However, unlike findings from social psychology, where success framing often results in positive bias (Cone et al., 2017;Kahneman & Tversky, 1984), success-related information about AIgenerated artworks appears peripheral in moral judgment contexts. This limited influence may indicate a deeper skepticism regarding AI's artistic capabilities (Bellaiche et al., 2023), as framing AI art as successful could highlight concerns about potential deception, and the undermining of traditional artistic values and practices. ...
Throughout history, art creation has been regarded as a uniquely human means to express original ideas, emotions, and experiences. However, as Generative Artificial Intelligence reshapes visual, aesthetic, legal, and economic culture, critical questions arise about the moral and aesthetic implications of AI-generated art. Despite the growing use of AI tools in art, the moral impact of AI involvement in the art creation process remains underexplored. Understanding moral judgments of AI-generated art is essential for assessing AI's impact on art and its alignment with ethical norms. Across three pre-registered experiments combining explicit and implicit paradigms with Bayesian modelling, we examined how information about AI systems influences moral and aesthetic judgments and whether human art is implicitly associated with positive attributes compared to AI-generated art. Experiment 1 revealed that factual information about AI backend processes reduced moral acceptability and aesthetic appeal in certain contexts, such as gaining financial incentives and art status. Experiment 2 showed that additional information about AI art's success had no clear impact on moral judgments. Experiment 3 demonstrated that an implicit association task did not reliably link human art with positive attributes and AI art with negative ones. These findings show that factual information about AI systems shapes judgments, while different information doses about AI art's success have limited moral impact. Additionally, implicit associations between human-made and AI-generated art are similar. This work enhances understanding of moral and aesthetic perceptions of AI-generated art, emphasizing the importance of examining human—AI interactions in an arts context, and their current and evolving societal implications.
... For example, people's assessment of risk changes based on how choices are visually presented 19 or what other outcomes are experienced in the same context 20,21 . However, the most famous demonstration of context effects on risky choice is the 'framing effect' 22 . People become more risk-averse when choices are framed in terms of gains and more risk-seeking when they are framed in terms of losses, even when choices are equivalent between framing conditions [23][24][25][26] . ...
... People become more risk-averse when choices are framed in terms of gains and more risk-seeking when they are framed in terms of losses, even when choices are equivalent between framing conditions [23][24][25][26] . According to prospect theory 22 , this phenomenon arises because people experience the negative emotions associated with losing as stronger than the positive emotions associated with winning, an effect known as loss aversion 27 . ...
... Across two experiments, we found that people preferred making choices framed in terms of gains, and that they were even willing to incur a cost to do so. We also extended the classic framing effect 22 by demonstrating that people exhibit framing effects even when they choose the framing context. Finally, we found that participants' risk preferences predicted frame choice, with individuals who tended to be risk-averse preferring the gain frame. ...
Context shapes how we perceive choices and, therefore, how we decide between them. For instance, a large body of literature on the “framing effect” demonstrates that people become more risk-seeking when choices are framed in terms of losses. Despite this research, it remains unknown how people make choices between contexts and how these choices affect subsequent decision making. To address these questions, we designed the Frame Selection Task (FST). On each trial in the FST, participants first choose how risky and safe options are framed, either in terms of gains or losses, and then select between them. We found that participants exhibited frame preferences, with a predominant preference for the gain frame, and that they were willing to incur costs to select options within their preferred frame. Moreover, participants selected frames that aligned with their risk preferences: people with stronger risk aversion displayed a stronger gain-frame preference. These results demonstrate how people choose between contexts and that they can combine these preferences with cognitive biases to facilitate decision making.
Supplementary Information
The online version contains supplementary material available at 10.1038/s41598-024-79510-z.
... Cognitive biases play a critical role in the decision-making processes within these committees, potentially influencing the outcomes for students with special needs. Kahneman and Tversky (2000) have identified several fundamental heuristics that underlie cognitive biases. These biases can lead to oversimplification and errors in judgment by relying on surface-level similarities instead of thorough analysis. ...
... Cognitive biases can significantly impact the outcomes of students with special needs by influencing the decision-making processes of special education committees. Kahneman and Tversky (2000) have emphasized the potential pitfalls of cognitive biases, which can result in oversimplification and errors in judgment. They stress the importance of comprehensive analysis and avoiding reliance on surface-level similarities. ...
This research aimed to develop a comprehensive tool for assessing students' general and special education functional abilities, addressing the need for more accurate measurement tools in education. The study employed a three-stage methodology, including a literature review, content analysis of special education committee protocols, and expert evaluation of identified criteria. The resulting assessment tool comprises eight general criteria for functional assessment and three main functional domains: cognitive-academic, emotional-behavioral, and social-communicative. Additionally, there are ten parameters for evaluating function in each functional domain at each age level (preschool, elementary, and high school). The study used statistical analysis to evaluate the relevance and consensus among experts regarding the identified criteria. The results underscore the importance of a multifaceted approach to functional assessment, providing a more comprehensive understanding of students' functional abilities and needs. This research has the potential to significantly impact the evaluation of students' needs and abilities, leading to more effective decision-making processes and interventions. Future research will focus on validating the tool in various settings and exploring its predictive capabilities.
... In Chapter 4, we discuss how category theory concepts can be used to express relations between members within categories and those within other categories. We also make some proposals how functors could be used to describe relationships and operations, such as ownership, transactions, and price formation, in the context of some of the established theories in microeconomics, such as choice modeling (e.g., McFadden 1980, Anderson, 1992 or prospect theory (Kahneman and Tversky, 1984). In Chapter 5, we briefly discuss applications, such as product design and price optimization. ...
... We can denote that as functor V from the category Pob to the category Val, corresponding to statement F1. We propose that, following the ideas of prospect theory (Kahneman and Tversky, 1984), V can also be interpreted as a value function with which agents relate subjective valuations to objects. ...
We investigate a possible category theoretical description for agent based modeling by outlining justifications for two main principles to describe the valuations in a realistic way in microeconomics: 1) It is assumed that the valuations can be expressed as a subcategory of the category of metric space so that value differences between various objects, that agents assign to them, can be expressed with a metric that is consistent with the concept of distance in mathematical metric spaces. 2) In realistic economic models, the category of valuations does not consist of linear spaces other than in special cases. We also discuss how category theoretical concepts such as morphisms and functors can be used to express transformations within categories and relations between other categories. We then present examples how functors and morphisms could be used to describe relationships and operations, such as ownership changes, transactions, and price formation, in the context of some of the established theories in microeconomics. Finally, we discuss briefly possible applications, such as product design and price optimization.
... They recognize the importance of psychology in the economic agent's decision-making process. Behaviorists showed that individuals do not make pure risk-neutral financial decisions; those decisions are influenced by emotional, cognitive, and social factors (Kahneman and Tversky, 1984). ...
... Figure 1 shows the heuristics and how they may be reflected in investors' decisions. Kahneman and Tversky (1984) The BE has two prominent linkages. First, heuristics are split into representativeness and anchoring. ...
This paper analyzes market sentiment using digital news to understand the influence of cognitive biases (behavioral economics) on the investment decisions of economic agents. Web scraping techniques were employed to gather news about “América Movil” stock, the company with the highest market capitalization value. Subsequently, Natural Language Processing (NLP) tools are used to determine sentiment polarity scores, Pearson correlation sentiment scores are carried out. The data consists of digital news articles related to América Movil and its corresponding historical stock price data, providing a basis for sentiment analysis and trend comparison. The findings expose a consistent trend between sentiment polarity scores and stock price movements. Moreover, economic and political factors significantly influence sentiment serving as early indicators of stock price behavior. The model has practical implications for behavioral economics, demonstrating how news profoundly influences investment decisions and shapes the behavior of the Mexican market. This research uniquely combines sentiment analysis of digital news with stock price data to highlight the impact of cognitive biases on investment decisions in the Mexican market.
... The more extensive the perceived harm, the stronger the attribution of blame is likely to be (Hood, 2011). Since in a situation of uncertainty, people overestimate negative consequences (Kahneman & Tversky, 1979, 1984, we can expect that conducting an experiment will be perceived as entailing more limited negative consequences compared to a large-scale reform. These choices may be influenced by various contextual factors. ...
... On the one hand, the higher the level of uncertainty of the outcomes, the greater the opportunities for policy learning (Ansell & Bartenberger, 2016;Bravo-Biosca, 2020;Nair & Howlett, 2016) and the larger the potential size of the "credit" policymakers can claim. On the other hand, the higher the uncertainty, the higher the perceived probability that the experiment could fail, which may induce risk aversion (Kahneman & Tversky, 1979, 1984 and hence a disinclination to experiment (Ettelt et al., 2015;McFadgen & Huitema, 2018a, 2018bTeets & Hasmath, 2020). ...
Policy experimentation has been proposed as a key strategy for coping with increasingly complex policy challenges. Despite considerable academic discussion on public policy experiments, there is a lack of systematic analyses of the political dimensions of policy experimentation. In this paper, we advance the understanding of politics of experimentation by analysing how policy actors’ perceptions of blame avoidance and credit claiming influence experimental policymaking. As a theoretical contribution, we outline expectations about how the mechanisms of blame avoidance and credit claiming can influence policymakers’ attitudes towards experiments and which contextual factors are likely to shape these dynamics. In the empirical part, we probe the plausibility of the theoretical propositions by using a comparative case study of Estonia and Finland. We draw upon policy documents and semi-structured interviews conducted with 66 public officials in Estonia and Finland in 2022–2023. Our empirical analysis demonstrates that the mechanisms of blame avoidance and credit claiming play a significant role in politicians’ decisions to launch large-scale policy experiments. Our study also shows that these impacts are mediated by contextual factors like the urgency of policy problems, expected media reactions, public trust, and cumulative experience with policy experimentation.
... These elements can influence the attachment individuals form with their environment, particularly in the case of property owners, who may experience a heightened fear of loss (Clark et al., 2024). This stronger attachment to place, and the desire to remain in it, may also be interpreted through the lens of endowment bias, which posits that individuals tend to overvalue what they own (Kahneman & Tversky, 1984). Conversely, the inability to choose one's living environment may diminish affective behaviors toward place (Casakin et al., 2021). ...
... While cognitive processes remain important, as highlighted in Ellis's model (1973), our findings underscore processes involving decision-making or behavioral intentions, these two factors are intertwined rather than differentiated (Devine-Wright, 2009;Ruiz et al., 2018). Similar results have been reported, for instance, in studies on risk likely to move, consistent with the concept of endowment bias (Kahneman & Tversky, 1984). Nevertheless, even in neighborhoods selected for their resources or environmental qualities, behavioral adjustments often require more effort compared to cognitive-emotional adaptations. ...
Cognitive and emotional dimensions are commonly included in the measurement of place attachment, yet behavioral indicators are often overlooked. While many researchers consider place dependence as the conative component of place attachment, it primarily reflects the functional advantages one location offers over another for performing specific behaviors. Similarly, although place attachment is frequently regarded as an antecedent of various pro-environmental behaviors, this perspective fails to directly assess behaviors that demonstrate the development of place attachment itself. This study aims to measure place attachment through items representing emotional, cognitive, and behavioral dimensions, examine its relationship with place identity, and explore whether places offering security and satisfaction foster proximity-seeking behavior, as suggested by social attachment theory and Aging in place approach. The results indicate that the cognitive-emotional component of place attachment is significantly stronger than its behavioral counterpart. However, both components are markedly lower when the neighborhood is chosen for economic reasons or when residents hold a negative perception of their neighborhood. In addition, favourable conditions and strong relationships with neighbours, which are considered important elements of the social capital of a place, are essential for the development of the behavioural component. In contrast, only the cognitive-emotional component significantly influences place identity. Lastly, the behavioral component accounts for the greatest variance in physical proximity to the neighborhood, underscoring the importance of behavioral manifestations in establishing an attachment bond.
... For instance, winning second place in a contest might feel rewarding until one realizes there were only two participants. This context-dependent valuation is a well-documented phenomenon, observed in both value-based decision-making scenarios, where option values are explicitly known (Busemeyer et al., 2019;Kahneman & Tversky, 1984;Nieuwenhuis et al., 2005;Rangel & Clithero, 2012;Tversky & Simonson, 1993), and in reinforcement learning (RL), where values are acquired through trial and error (Bavard et al., 2018(Bavard et al., , 2021Bavard & Palminteri, 2023;Hayes & Wedell, 2023a, 2023cHunter & Daw, 2021;Juechems et al., 2022;Palminteri et al., 2015;Palminteri & Lebreton, 2021;Spektor et al., 2019). This influence of context on value perception may serve as an adaptive mechanism, enabling organisms to make efficient decisions under neurobiological and environmental constraints (Carandini & Heeger, 2012;Louie et al., 2015;Louie & Glimcher, 2012;Rustichini et al., 2017;Webb et al., 2021). ...
Contextual valuation is a well-documented phenomenon in reinforcement learning (RL), typically manifesting as range normalization in outcome representation. However, recent findings have revealed systematic deviations from this model, particularly when three options with equally spaced values are presented. In this study, we hypothesized that these distortions in outcome normalization arise from attentional processes. To test this, we conducted three RL experiments with 105 participants while simultaneously tracking their gaze position with eye-tracking. Furthermore, we systematically manipulated attention using both top-down and bottom-up approaches. These manipulations significantly increased the subjective valuation of attended options, thereby supporting a causal role of attention in shaping value representation. To account for these effects, we developed an RL model that integrates attentional mechanisms, wherein gaze duration directly modulates the absolute value of options prior to range normalization. This attentional range model outperformed attention-free alternatives, underscoring the critical influence of attention in value computation.
... Technology acceptance theories founded on the Theory of Reasoned Action (TRA) and the Theory of Planned Behavior (TPB) predominantly revolve around the assumption of rational individuals. An individual's attitudes and behaviors toward adopting or rejecting technology are substantially influenced by cognitive mental aspects, which simultaneously perceive behavioral control (Balconi, 2017); (Kahneman, 1984). Rejecting the introduction of pagers, Microsoft Zune, and various other technological innovations fundamentally involves rational considerations. ...
The purpose of this study is to investigate the acceptance of electric vehicle (EV) technology in Medan City, focusing on aspects that drive public adoption. The Unified Theory of Acceptance and Use of Technology (UTAUT) and Lazy User (LUM) models are used to understand these dynamics. A survey was conducted with 411 respondents from several sub-districts in Medan City. The questionnaire included demographic information, driving habits, electric car expectations, purchase intentions, and Likert scale items related to the UTAUT constructs. Data analysis was performed using Structural Equation Modeling (SEM) with the PLS method. Effort Expectancy and Facilitating Conditions significantly influenced Behavioral Intention and Use Behavior, while Performance Expectancy and Social Influence showed inconsistent effects. LUM was supported, indicating that Effort Expectancy influenced the preference for the behavior with the least effort.
... In fact, most of the time, this type of comparison known as a downward comparison has no effect at all on an individual's happiness. People's perceptions of wins and losses in this situation are asymmetrical, making losses appear far greater than gains (Kahneman & Tversky, 1984). ...
... Decisionmaking involving human agents and human-in-the-loop control of critical applications tends to be more conservative, prioritizing safety and performance guarantees over risktaking, even when the latter has the potential to maximize the utility function. Cumulative prospect theory (CPT) was developed as an alternative framework to EUT, addressing subjectivity and behavioral effects in decision-making [10]- [12]. This theory introduces a more sophisticated approach by linking utilities to gains and losses via a value function and transforming the probability distribution of outcomes into decision weights through a weighting function. ...
This paper addresses query scheduling for goal-oriented semantic communication in pull-based status update systems. We consider a system where multiple sensing agents (SAs) observe a source characterized by various attributes and provide updates to multiple actuation agents (AAs), which act upon the received information to fulfill their heterogeneous goals at the endpoint. A hub serves as an intermediary, querying the SAs for updates on observed attributes and maintaining a knowledge base, which is then broadcast to the AAs. The AAs leverage the knowledge to perform their actions effectively. To quantify the semantic value of updates, we introduce a grade of effectiveness (GoE) metric. Furthermore, we integrate cumulative perspective theory (CPT) into the long-term effectiveness analysis to account for risk awareness and loss aversion in the system. Leveraging this framework, we compute effect-aware scheduling policies aimed at maximizing the expected discounted sum of CPT-based total GoE provided by the transmitted updates while complying with a given query cost constraint. To achieve this, we propose a model-based solution based on dynamic programming and model-free solutions employing state-of-the-art deep reinforcement learning (DRL) algorithms. Our findings demonstrate that effect-aware scheduling significantly enhances the effectiveness of communicated updates compared to benchmark scheduling methods, particularly in settings with stringent cost constraints where optimal query scheduling is vital for system performance and overall effectiveness.
... Intraindividual factors can influence information processing, resulting in biased evaluations and judgements (Fischhoff & Broomell, 2020;Kahneman & Tversky, 1984;Pronin, 2007). For instance, cognitive factors like individuals' prior experiences, attention and working memory can significantly impact information interpretation and decision-making (Blanchette & Richards, 2010;Nickerson, 1998;Tran et al., 2011;Tversky & Kahneman, 1974). ...
Emotion ensemble judgement refers to the cognitive process by which individuals extract the general emotional tone of a busy visual scene. This study investigated whether emotion ensemble judgement can be changed through cognitive training. Two groups of participants underwent interpretation and visual attention training towards positivity, respectively, while the third group served as the control (total n = 102). All three groups participated in an emotion ensemble-rating task where they rated the overall emotion of a set of facial expressions three times (pre-training, immediately post-training and 7-days post-training). The results demonstrated the malleability of perceptual judgement of an emotion ensemble. The interpretation-training group exhibited a shift towards positivity, particularly for fearful ensembles. Similarly, the attention-training group also showed a positive shift, along with increased eye movements towards happy stimuli immediately after training. These findings help shed light on the formation and correction of biases in emotion perception and judgement.
... The facility of home delivery if changeable had been found significantly impacting the consumer's purchase decisions regarding the order incidence and order size Lewis et al., 2006). The operational efficiency of the home delivery had been studied by analyzing its timeliness, by comparing fast and normal delivery time ( Many previous studies applied mental accounting as a method of getting the importance assigned by the consumers to the facility of home delivery assuming that the assessment for preference is based on a logical and comparative assessment since home delivery impacts the buying decision in a financial nature (Kahneman and Tversky 1984;Thaler 1985Thaler , 1999Shefrin and Thaler 1988). This approach of mental accounting was extended to examine the consumer feelings with respect to the magnitude of saving possible by availing the home delivery option in the monetary form of a "emotional account", influencing the consumers savings (Levav and McGraw 2009). ...
Free home delivery is not only promised by online platforms but equally offered by the physical shops and malls, encompassing all types of goods, e.g., perishable as well as durable (Gould, 1998; Browne et al., 2001; Hays et al., 2005). During the COVID-19 pandemic, home delivery emerged as a compulsory extension of the main service of sales to avoid the crowd of the individuals at the point of sale (Hobbs, 2020). The add-on of free home delivery is expected to play a role as a form of value-added service component and is expected to influence the buyer in determining their preference for various shopping specifications. Besides, the free-home delivery is promised by almost all the online platforms, either for special members as a token of appreciation for their loyalty or on special occasions like festival and season sales as an additional element of motivation. Home delivery (either free or charged) is practiced and offered as a function to ensure the customer's satisfaction (Morganosky & Cude, 2000). Home delivery is the act performed by the seller by carrying the goods purchased by the buyer to the buyer's doorsteps without loading any additional charge, just to enhance the feeling of conveyance. The onus of taking the goods from the point of sales to the consumption point, i.e., the buyer's home, is designed to eliminate the perceived barrier acting in the magnitude of the physical distance between the mall or shop and the buyer's residential location. Distance influences the consumer's liberty in deciding the quantity, which otherwise might act as a barrier in case of opting for bulk buying. This paper attempts to measure the role of home delivery nature as a moderating agent between payment modes and modes of shopping. The test model assigned the specific service offered as 'free home delivery', with respect to the two dimensions, i.e., consumer socio-demographic characteristics, which determine their profile and the type and nature of the goods purchased by the big-scale physical stores. Free-home delivery is expected to perform a much more value-added function than just a last mile logistics activity (Cairns, 1996) equally for the businesses, but has the same been perceived by the individuals? Introduction:
... Glimcher et al. (2009) explored the neuroeconomic perspective, connecting economic principles with neural mechanisms to understand how decisions are made. Additionally, Kahneman and Tversky (2000) expanded on the dual-system model, distinguishing between intuitive and deliberative decision-making processes. ...
... As mentioned above, one of the pathbreaking contributions of Daniel Kahneman and Amos Tversky is related to the framing effect which refers to the tendency of individuals to react differently to the same objective information, depending on how it is framed or presented, even with just minor changes in wording Kahneman 1981, 1986;Kahneman and Tversky 1984;Kahneman 2011; see also Farrow et al. 2018;Grolleau et al. 2022). 2 While Tversky and Kahneman's original work (1981) on framing effects focused primarily on how the presentation of outcomes (e.g., gains vs. losses) influences choices and decisionmaking in risky contexts, the theoretical underpinnings of their work can be extended to riskless contexts and other forms of linguistic framing (see Kahneman 2003aKahneman , b, 2011, including the noun-verb distinction. This extension is supported by the shared emphasis on how the presentation of information, rather than its content, can significantly impact cognitive processing, emotional responses, and ultimately, decision-making behaviors (see, e.g., Kahneman et al. 1986;Levin et al. 1998). ...
Inspired from Kahneman’s seminal contributions to the theory of framing, we test the impact of noun- versus verb-based framings (e.g., do not be a polluter versus do not pollute) on individuals’ behavioral intentions towards two pro-environmental messages aiming at reducing waste. Using a non-incentivized laboratory experimental survey, we find a significant effect of messages framed as verb-based actions (i.e., do not pollute, do not waste) in driving individuals to sign a petition in favor of garbage recycling and accept to receive tips about food waste. Additionally, we also identify a significant negative influence of reactance, hampering pro-environmental behavior. We discuss our exploratory results keeping in mind the humility that characterizes Kahneman’s scholarly legacy.
... 17 Looking at users' motivations regarding the use of warning apps, Fischer-Preßler et al. 4 find that maladaptive rewards -advantages derived from not using a warning app, such as saving battery and data space -have a negative influence on app adoption and continued use. Similarly, inhibition theory posits that potential losses are perceived more strongly than potential gains, 31 stressing the importance of effort expectancy and other perceived costs for digital service adoption. 32 Finally, citizens in state-oriented risk cultures have a low motivation to engage in crisis management and preparedness, 6,7 stressing the importance of low adoption costs. ...
In crisis situations, citizens’ situational awareness is paramount for effective response. While warning apps offer location-based alerts, their usage is relatively low. We propose a personalised messaging app channel as an alternative, presenting a warning bot that may lower adoption barriers. We employ the design science research process to define user requirements and iteratively evaluate and improve the bot’s usability and usefulness. The results showcase high usability, with over 40 % expressing an interest in utilising such a warning channel, stressing as reasons the added value of proactive warnings for personalised locations while not requiring a separate app. The derived requirements and design solutions, such as graphically enhanced user interface elements as guardrails for effective and error-free communication, demonstrate that a suitable warning chatbot does not necessarily require complex language processing capabilities. Additionally, our findings facilitate further research on accessibility via conversational design in the realm of crisis warnings.
... According to the prospect theory in [14,15], agents formulate and carry out their investment strategy to get excess profit by identifying the gap between the stock's current price and intrinsic price. To be specific, when ...
A kinetic exchange model is developed to investigate wealth distribution in a market. The model incorporates a value function that captures the agents’ psychological traits, governing their wealth allocation based on behavioral responses to perceived potential losses and returns. To account for the impact of transaction frequency on wealth dynamics, a non-Maxwellian collision kernel is introduced. Applying quasi-invariant limits and Boltzmann-type equations, a Fokker–Planck equation is derived. We obtain an entropy explicit stationary solution that exhibits exponential convergence to a lognormal wealth distribution. Numerical experiments support the theoretical insights and highlight the model’s significance in understanding wealth distribution.
... I therefore argue that the probability of opting for an authoritarian alternative depends largely on the perceived utility of the democratic dimension being sacrificed relative to the benefits offered by the improvement in the economy or crime rates (Kahneman and Tversky 1984;Levy 1992). ...
To what extent are citizens willing to support undemocratic practices? With the recent waves of democratic backsliding around the world, the answer to this question has become increasingly important. Existing studies find that citizens are willing to trade democratic institutions and political rights for better economic and physical security. But are individuals equally willing to trade different dimensions of democracy? Using a pre-registered conjoint experiment in Australia, Canada, and the United Kingdom (N = 3,033), I test the willingness of citizens to trade five different dimensions of democracy in exchange for better material and physical security. The results of the experiment demonstrate that citizens are less willing to compromise on elections and political rights, but more open to forgo accountability mechanisms. These findings make a substantial contribution to the literature on citizen support for democratic backsliding by identifying which dimensions of democracy people are least (and most) likely to abandon.
... The theoretical overlap between intuition and flow-a DPT perspective Järvilehto (2016) offers the first theoretical examination of the relationship between intuition and flow, through the lens of DPT. Dual process theory posits two separate cognitive systems: system 1 and system 2. In brief, system 1 involves fast, parallel and non-conscious information processing; system 2 involves slow, conscious and serial information processing (Tversky and Kahneman 1974, Kahneman and Tversky 1984, Sloman 1996, Stanovich and West 1998, Evans 2003, Kahneman 2011, Da Silva 2023. It is important to note that the term 'dual process' represents a family of theories, not a single monolith (see Evans and Stanovich 2013). ...
This paper explores the relationship between intuition and flow from a neurodynamics perspective. Flow and intuition represent two cognitive phenomena rooted in nonconscious information processing; however, there are clear differences in both their phenomenal characteristics and, more broadly, their contribution to action and cognition. We propose, extrapolating from dual processing theory, that intuition serves as a rapid, nonconscious decision-making process, while flow facilitates this process in action, achieving optimal cognitive control and performance without [conscious] deliberation. By exploring these points of convergence between flow and intuition, we also attempt to reconcile the apparent paradox of the presence of enhanced intuition in flow, which is also a state of heightened cognitive control. To do so, we utilize a revised dual-processing framework, which allows us to productively align and differentiate flow and intuition (including intuition in flow). Furthermore, we draw on recent work examining flow from an active inference perspective. Our account not only heightens understanding of human cognition and consciousness, but also raises new questions for future research, aiming to deepen our comprehension of how flow and intuition can be harnessed to elevate human performance and wellbeing.
... For individuals who have experienced restrictions, being actively involved is critical. Kahneman and Tversky (1984) discuss cognitive ease in the context of learning, highlighting that easily recalled information requires less effort to process than complex information, which demands more cognitive effort and can increase discomfort and decrease trust. In clinical practice, easily recalled, collaboratively developed strategies are likely to be more effective than more complex interventions in future challenging situations. ...
This chapter examines the role and importance of post-occurrence reviews within mental health contexts, —variously called ‘debriefing’, ‘post-incident review’ and ‘seclusion/restraint review’. The focus is on the relevance of the post occurrence review process following incidents of patient violence and coercive measures such as seclusion and restraint, but we also explore wider applications. We highlight the growing awareness of patient rights, ethical considerations and efforts to reduce coercion in psychiatric care. The chapter emphasises the need for structured reflective practices to address the psychological and emotional impacts of such interventions on patients and staff. It reviews regulatory directives and standards that mandate post occurrence reviews, explores policies advocating for transparency and continuous improvement, and proposes a multiaxial approach to meet the diverse needs of all involved parties, namely the service user, staff, witnesses and the unit multidisciplinary team. This approach includes immediate support, reflective analysis and development of preventive strategies, urging a shift towards open dialogue and psychological safety in healthcare teams. The chapter provides practical guidance for mental health professionals on implementing or enhancing post-occurrence review processes, ultimately aiming to improve patient care and reduce the use of coercion.
... Framing in news media occurs when journalists make choices about which content to include or exclude in a story, whose perspectives to highlight, and what attributes of an event to emphasize over others [27]. Those decisions make certain facets of a story more salient to audiences, and when the same messages are repeated in the news over time, people are likely to internalize those ideas [27,34,35]. ...
Community firearm violence (CFV), including fatal and non-fatal shootings that result from interpersonal violence, disproportionately harms people from marginalized racial groups. News reporting on CFV can further exacerbate these harms. However, examining the effects of harmful news reporting on CFV on individuals, communities, and society is hindered by the lack of a consensus definition of harmful reporting on CFV. In this study, we aimed to define harmful reporting on CFV. We used a modified, three-round Delphi process to achieve consensus among diverse stakeholders. Round 1 sought to assess consensus on 12 potentially harmful news content elements for three levels of harm (individual, community, and society). Round 2 invited panelists to rate the severity of each news content element at each level of harm. Round 3 asked panelists to agree or disagree with the panel’s median severity rating of each element at each level of harm. Twenty-one panelists were recruited from three expertise groups (lived experience of CFV, journalism practice, scholarship) and all panelists completed all three rounds. In Round 1, no negative consensus was achieved for any of the proposed news content elements. In Round 2, panelists assigned moderate to severe harm ratings for all but two news content elements, and median harm ratings for each element varied across the different levels of harm. In Round 3, panelists reported high levels of agreement for each harm rating at each level. This modified Delphi process yielded a definition of the 12 elements that comprise harmful news reporting on CFV and severity ratings of harm caused by each element at each level according to expert consensus. Future work will use these results to evaluate and intervene on harmful reporting on CFV. Reducing harm from reporting on CFV can help address this health disparity and support evidence-based approaches to this urgent public health issue.
... Selling may seem advantageous, but this decision is complicated by market speculation and emotional attachment to their homes (Abraham and Hendershott, 1996;Duca et al., 2010;Hong and Ryu, 2023;Saunders, 1978Saunders, , 1990. Kahneman and Tversky's (1984) prospect theory, which emphasizes loss aversion, suggests that the fear of losing ownership may outweigh the potential financial gains of selling. Wiedemann (2023) argues that as debt-to-income ratios increase, individuals tend to favor greater government intervention and stronger safety nets to mitigate financial uncertainties. ...
This study investigates the heterogeneous impacts of housing wealth on political outcomes in OECD countries, with a particular focus on how different forms of homeownership interact with house price-to-income ratios. The analysis explores the relationship between these factors and their influence on electoral democracy. The findings reveal that as house price-to-income ratios rise, electoral democracy tends to decline in contexts with a higher proportion of outright homeowners, while it is strengthened in contexts with a growing proportion of mortgaged homeowners. By examining the dual role of housing assets, this study underscores their potential to both stabilize and destabilize democratic processes, depending on the type of ownership. This research highlights the crucial connection between economic conditions and political stability, calling for informed policy interventions to preserve and enhance democratic institutions.
... Apparently, the prediction of evolutionary theory that human beings would cooperate under certain conditions of reciprocity can better explain actual data on how people behave in non-cooperative game situations (Fehr et aI., 2002;Fehr & Schmidt, 1999), compared to theories that assume that humans would act on the basis of calculated, wealth-maximizing, self-interest. De Dios (2006) further notes how some traditional assumptions about the rationality of human being in economic decision making are actually false; instead, humans think and make decisions based on heuristic strategies that are proposed to be biological adaptations that server evolutionary goals (Gigerenzer & Selten, 2001;Kahneman & Tversky, 1984;Tversky & Kahneman, 1974). ...
My main thesis in the paper is that Philippine social scientists need to engage the biological (i.e., genetic and neurological processes shaped by human evolution) dimensions of behavioral and social phenomenon. In developing this thesis, I first broadly clarify the so-called nature-vs.-nurture debate, which pits biological explanations against social and cultural explanations, then proceed to briefly explain contemporary perspectives of evolutionary psychology that recast the nature-vs.-nurture debate. In particular, drawing from examples of recent research and theory, I attempt to show that current theorizing underscores the close interaction between biological and socio-cultural processes, and thus there is no need to construe biological knowledge as antagonistic to socio-cultural theorizing. I cite some examples to show how social science theories are improved when biological factors are incorporated in the theories. I then discuss the implications to Philippine social science, and suggest that a small sector of the social science community should explore how the biological dimensions of social and behavioral phenomenon can improve our theorizing. I further suggest that there is a need to re-examine how Philippine social scientists construe the biological nature of social beings, as this may influence and even constrain how biological knowledge is engaged in theorizing, and to consider some possible constraints within the social science research process in the country.
Built environment and infrastructure designs are produced in complex information systems. Managing this complexity poses a significant challenge; data scarcity and bias are substantial obstacles. This paper addresses the gap in data availability by mining building information modeling (BIM) meta-databases. Two case study databases are studied and assessed through various analytical tools, including network modeling, statistics, entropy, fast Fourier transform (fft), and information constraint (IC). Through analytical and empirical investigation, insights into the morphology, characteristics, failures, causes, and trajectories of design information systems are derived, showcasing that complex systems can be retroactively deciphered and predicted to a certain extent. This study acknowledges design errors as social and psychological phenomena and proposes behavioristic and systemic remedies for addressing design faults. Applying design quality-control management tools, risk assessment, and responsibility allocation becomes feasible, enabling proactive and real-time corrective actions. This research contributes a theoretical framework and practical methodologies as well as the application of data analysis tools to design quality control management, addressing both the information gap and the complexity challenge.
The primary objective of this study is to provide valuable insights into the trends of hedonism, their consequences, and maladaptive consumer behaviors. This is achieved by a parallel mediation‐based analytical approach that examined the link between hedonism and compulsive buying behavior, incorporating consumer spendthriftness and compulsive hoarding‐acquisition constructs, within a hierarchical framework of value‐attitude‐behavior. The study positions the hedonism‐compulsive buying relationship at the intersection of consumer spendthriftness and compulsive hoarding theories. Furthermore, the conceptual model delves into relationships, with a particular focus on moderation‐mediation effects, specifically gender and education level. A quantitative survey was conducted to explore these research aspects, involving a randomly selected sample of 390 respondents from the Prolific platform. Participants were chosen through a self‐reporting method to represent the youth market sector in the United States, reflecting Western consumer culture. The focus was on Generation Z, aged 17–25, consisting of both men and women. This group was further divided into two subgroups: those still in educational development and those who have graduated and entered adulthood without financial support from their families. Research findings indicated that a hedonic orientation, along with associated spendthriftness, compulsive hoarding, and compulsive buying, is more prevalent among young women than young men. Additionally, results revealed that college students, as opposed to graduates, exhibit a higher hedonic capacity and an increased inclination towards maladaptive spending patterns and hoarding. Hedonism, as the professed personal value, makes college students more susceptible to compulsive buying risks, but indirectly via excessive spending inclinations and irresistible consumer desire centered on accumulation/acquisition. Additionally, a qualitative study consisting of interviews with students and graduates was conducted to explore the underlying factors contributing to maladaptive compulsive buying behaviors. This study expanded on our previous quantitative research, reinforcing the argument that hedonism plays a significant role in driving consumer spendthrift behavior, excessive hoarding, and compulsive buying, particularly among students, rather than graduates. Finally, the insights gained from the study helped us understand the development of consumer hedonism, enabling us to suggest effective behavioral interventions and social policies to address these issues among younger consumers.
Behavioural economics is mostly known as a field at the intersection of psychology and economics that studies how people actually make decisions. However, less is known about how behavioural economics paved its own way to normative models of decision making. This article traces the meanings of normativity in behavioural economics, exploring the divergent interpretations of "irrational" behaviour and their implications for policymaking. Our analysis begins with the heuristics-and-biases programme in the 1970s and 1980s, where normativity was mainly tied to academic debates on how to interpret empirical violations of rationality axioms observed in lab experiments. From the 1990s, the understanding of normativity shifted towards welfare, when Kahneman and colleagues introduced the concept of experienced utility, a framework grounded in hedonism. By the 2000s, interpretations of "irrational" behaviour had diversified, leading to varied policy approaches. One of the most influential ones has been nudging, which aims to leverage individuals' cognitive biases to help them make choices that improve their welfare "as judged by themselves". We conclude by discussing the emergence of agency-centric approaches in the 2010s, which have gained prominence as a response to the limitations of nudging.
Extant research has shown that ordinary causal judgments are sensitive to normative factors. For instance, agents who violate a norm are standardly deemed more causal than norm-conforming agents in identical situations. In this paper, we present novel findings that go against predictions made by several competing accounts that aim to explain this so-called "Norm Effect". By aid of a series of five preregistered experiments (N = 2'688), we show that participants deem agents who violate nonpertinent or silly norms-norms that do not relate to the outcome at hand, or for which there is little independent justification-as more causal. Furthermore, this curious effect cannot be explained by aid of potential mediators such as foreknowledge, desire or foreseeability of harm. The "Silly Norm Effect", we argue, spells trouble for several views of folk causality in the literature, and lends support to a Bias View, according to which Norm Effects are the result of blame-driven bias. We close with a discussion of the relevance of these findings for the just assessment of causation in the law.
Daniel Kahneman’s pioneering research in behavioral economics has profoundly influenced the field of environmental economics, shaping what is now known as behavioral-environmental economics. This paper provides a scoping review of how Kahneman’s theories have been applied by environmental economists to individual decision-making for climate change risks. We focus on deviations from rational behavior that impact climate adaptation decisions, such as loss aversion, the underweighting of low-probability events and the influence of heuristic-driven System 1 thinking over analytical System 2 reasoning. Our review outlines diversity in methodologies, including household surveys and economic experiments, used to analyze actions like investments in climate resilience and the purchase of disaster insurance. We synthesize these findings showing how Kahneman’s legacy explains suboptimal preparedness behaviors and discuss policy strategies derived from these insights, such as risk communication, nudges, and financial incentives for disaster preparedness. We conclude by proposing an agenda for future research to more systematically assess Kahneman’s ideas across various climate risk contexts and to deepen the application of Kahneman’s theories in tackling broader, wicked environmental problems that require changing human behaviors.
While ‘culture’ is an omnipresent notion in management, economics, and business ethics, it is often used in the sense of “climate” (Denison 1996). In this contribution, we approach culture in a different manner while emphasizing a methodological cultural perspective. We will first outline a general cultural approach in a Weberian tradition that focuses on five crucial levels of analysis: elements of a theory of action, social relations, institutions, organizations, and system theories. Based on that, we will sketch selected considerations by identifying elements of organizational ethics, business and society relations, and societal systems perspectives. This will allow us to outline a broad spectrum of conceptual considerations by introducing concepts such as moral (bounded) rationality, multi-rational and poly-lingual organizations, the ethics of organizational fields, and systemic responsibility. Finally, we sketch some directions for further research, which not only concerns social-science approaches but also offers some suggestions for bridging our approach with normative business ethics.
Recent literature on negative online reviews (NOR) indicates its growing strategic importance in understanding consumer behavior and brand image. While past literature shows the adverse effect of NOR on low‐involvement products such as books and digital music, there is a dearth of research on its impact on high‐involvement decisions, such as visiting a travel destination. There is also less understanding of how consumers perceive and process NOR characteristics. Therefore, this study aims to investigate the impact of NOR characteristics (level of detail and source credibility) on review credibility, destination image, and intention to visit a travel destination. Two 2 * 2 between‐subject factorial experiments were conducted to examine the effects of the level of detail (general vs. detailed) and source credibility (high vs. low) using different sample and design settings. The results revealed that detailed NOR and high source credibility of NOR increased review credibility. The negative effect of detailed NOR on intention to visit was higher among older adults. The cognitive and affective destination image mediated between review credibility and intention to visit. The study has several implications for destination marketing organizations and contributes to the NOR literature.
Language plays a pivotal role in medicine, influencing clinical decision-making, patient perceptions, and healthcare outcomes. Cognitive linguistics and psychology provide crucial insights into how linguistic framing, biases, and communication strategies impact medical practice. The framing effect, cognitive biases such as anchoring and confirmation bias, and the psychological implications of medical terminology significantly alter both physician and patient decision-making. Additionally, effective doctor-patient communication fosters trust and improves treatment adherence, while language barriers can lead to miscommunication, medical errors, and anxiety. Narrative medicine, which emphasizes patient storytelling, enhances diagnostic accuracy and empathetic care by allowing physicians to understand the full context of an illness. Furthermore, advancements in artificial intelligence (AI) and natural language processing (NLP) are transforming medical communication, providing real-time translation and personalized linguistic adaptations. However, human interaction remains irreplaceable in fostering trust and ensuring ethical and compassionate healthcare delivery. Future perspectives in medical linguistics involve AI-driven linguistic tools, personalized communication strategies based on psychological profiling, and expanded use of narrative medicine to enhance patient engagement. By integrating cognitive linguistics, psychology, and technology, healthcare professionals can refine communication approaches, mitigate biases, and ultimately improve patient care. Understanding the intricate relationship between language and cognition will enable a more patient-centered, inclusive, and effective healthcare system.
The objective of this essay is to present a comprehensive overview of two significant cognitive methodologies. The defining elements of the experiential mode include its intuitive, automatic, and natural nature, as well as its reliance on mental imagery that has acquired positive and negative meanings over time. An inherent characteristic of the alternative mode is its analytical, deliberative, and reasoning-based nature. In this response, I will provide a thorough analysis of the latest empirical data that sheds light on the concept of the affect heuristic. The term "affect heuristic" denotes a cognitive shortcut that assists individuals in making rational decisions across various situations. When individuals can effectively predict the favorable or unfavorable consequences of their decisions based on their prior experiences, it represents a significant achievement. However, we deem it as unsuccessful due to the significant disparity between the findings and our initial estimates.Given the aforementioned circumstances, the rational individual may ultimately transform into a sensible imbecile.
Behavioral finance has gained importance as an essential framework for understanding investor decision-making, particularly the influence of psychological biases. Thus this study focused on examining behavioral biases that affect women investors in the Indian equity market. Despite increasing participation by women in financial markets, their investment decisions often exhibit distinct patterns shaped by cognitive and emotional factors. This study has considered and tried to measure behavioral biases such as loss aversion, mental accounting, herding, and heuristics on women’s investment choices. The study employed a descriptive research design and quantitative data from surveys where structured questionnaire was distributed among women investors across diverse age groups, education levels, and income brackets. Findings from this study highlight the significant role of loss aversion, which often leads to overly conservative investment strategies, and herding behavior, driven by reliance on social and familial networks for financial decision-making. Additionally, a notable degree of anchoring bias is observed in women’s preference for traditional investment vehicles over equities. Heuristics are a significant driver of investment decisions; the other psychological factors like loss aversion, mental accounting, and herding do not appear to have a substantial impact in this model.
Purpose
The major shareholders may try to manipulate the stock price for tunneling after share lockup expiration, but the earlier studies focus on earnings management and do not consider other potential manipulation methods. Therefore, we explore the tone management of earnings communication conferences.
Design/methodology/approach
We take the China A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2021 as our sample to examine how, why and when share lockup expiration of major shareholders affects tone management of earnings communication conference.
Findings
Firms tend to engage in tone management in earnings communication conferences when the lockup expires by increasing the optimism of the tone and decreasing the similarity between the responses and questions. The purpose of tone management is not for share reduction, but rather for improving market performance and better share pledge. The effect of share lockup expiration is weaker when the firm engages in real or accrual-based earnings management, and when the firm keeps higher accounting conservatism. In addition, in companies at growth and maturity stages, where executive compensation is high, institutional investor ownership is low and the controlling shareholder is a non-state-owned enterprise, the impact of share lockup expiration on the tone management becomes more pronounced.
Originality/value
Our study reveals the ways and purposes of tone management when share lockup expires, shows the timing preferences of tone management and helps identify the quality of information disclosure in earnings communication conferences, enriching the research on tone management and market value management.
Violence is one of the most prominent social issues in our society in the present world, and school and societal violence have a very prominent role to play in its perpetuation. Some experts very firmly believe that physical punishment by a caring and loving parent does not have any negative effects on the child while some believe that physical punishment of any kind can be considered a minor form of assault towards children and can have a negative impact on the child. This chapter will analyze and review the various types of punishments and their impact on children's behavior. Through the means of this study, the authors will also try to understand the impact of these punishments after the attainment of adulthood, and how they contribute towards the promotion of antisocial and violent behaviors in both children and adults.
This study undertakes a multimodal framing analysis of the Obidient movement in Nigeria, with a view to exposing how Internet memes are deployed to advertise Peter Obi, the presidential candidate of the Labour Party (LP) in Nigeria’s 2023 election. Forty memes were purposively sampled from Nigerian WhatsApp platforms and data were analysed qualitatively using aspects of Kress and van Leeuwen (2006. Reading images: The grammar of visual design, 2nd edn. London: Routledge) grammar of visual design and Kuypers (2002. Press bias and politics: How the media frame controversial issues. Westport, CT: Praeger, 2009. Framing analysis. In Kuypers Jim (ed.), Rhetorical criticism: Perspectives in action, 181–204. London: Lexington Books) rhetorical framing analysis. The findings reveal that the meme producers employed contextual variables such as labels, metaphors, visuals, salience and keywords to frame Peter Obi, the Obidient movement and the LP as a valid alternative in the presidential election. The study also shows the deployment of semiotic concepts such as salience, social distance, attitude and framing to positively represent the Obidient movement and Obi. The study concludes that the text producers deploy memes to portray the Obidients and the Labour Party presidential candidate as victims of an incredible electoral process, and that the memes are created to reveal broader socio-cultural realities, especially the predominance of religious and ethnic politics in the Nigerian context.
The concept of cognitive biases, introduced in 1972 by D. Kahneman and A. Tversky and identifying the cause of erroneous decisions in human economic behavior, has become one of the explanatory models in describing the practices of modern cyber fraud. However, the growing scale and negative consequences of cyber fraud actualize the need to expand the interpretations of this phenomenon in the context of various disciplines, primarily sociology, which allows us to overcome the narrowly individual approach that links cognitive distortions only with the mental characteristics of human thinking and to set the vector of analysis of their socio-cultural determination. The article examines the heuristic prospects of using the concepts of cognitive sociology (in particular, M. Norton’s theory) as an interpretative model for the analysis of cognitive distortions in cyber fraud practices. This approach allows us to give a broad interpretation of this phenomenon as a necessary attribute of the general process of socio-cultural semiosis, to explain the manipulative nature of specific semiotic contours that determine the choice of a certain type of human action and the activation of specific cognitive distortions, to understand how certain cognitive distortions influence such a choice in a situation of cyber fraud, to show the conjugation of cognitive mechanisms and the socio-cultural environment in the process of forming networks of meanings in the “semiosis of cyber fraud”. The theoretical provisions of Norton's concept are examined using specific examples of such cognitive distortions as the authority effect, the trust effect, and the confirmation bias.
The purpose of this exploratory study is to preliminarily highlight the key frames that Russia uses within its strategic communication to explain the cases of civilian harm done by its forces in the full-scale Russo-Ukrainian war. The main research method applied in the research is the qualitative frame analysis of the messages by Russia’s communicators (primarily, state officials) that were spread in 2022 – 2024. The sample of civilian harm cases is identified based on the randomized selection from the Bellingcat dataset. Entman’s (1993) analytical framework of the 4 frame functions is used in interpretation of the results. The results show that Russian communicators apply the set of at least three frame types (ignoration, hit military targets, and anti-Russian insinuation) to interpret Russia’s war crimes in a favorable light. On the other hand, two more less typical, but important frame types are identified (depersonalized accident and vengeance). The results indicate Russia’s attempts to legitimize or reinterpret its war crimes and serve as a theoretical base for further studies of Russia’s framing within its strategic communication.
This study investigates the dynamic patterns of media consumption across various demographic groups, focusing on factors such as age, gender, occupation, income, and education. Through a survey of 500 respondents from different cities of North Bihar, the research reveals that while traditional media like newspapers and television remain prevalent, there is an increasing inclination towards digital media. Results show significant demographic differences in preferences, with younger audiences favoring digital platforms and older groups leaning towards traditional formats. Gender-specific trends highlight that males are more engaged with print media, while females exhibit a preference for Hindi newspapers.The findings underscore the intricate relationship between demographics and media preferences, suggesting that consumer behaviors are influenced by socio-economic factors, cultural norms, and technological advancements. These insights can guide media producers, advertisers, and policymakers to tailor content and strategies, ensuring relevance and accessibility across diverse population segments.
Real estate and the housing market is one of the main drivers of the economy and national prosperity. It contributes significantly to a nation’s GDP due to the numerous property-related activities associated with it, including construction, facility management, investments, etc. Real estate sector performance is greatly impacted by several dynamic factors including consumer spending, developer practices, government policies, demographic changes, and the overall health of the economy. Some research efforts developed simulation models to capture the dynamic environment of the real estate sector. Others tried to study the impact of behavioral biases on decisions in the housing market from the view of behavioral economics, which is based on incorporating psychology into economics science. However, there is a lack of efforts that formulated the implications of those behavioral biases on the growth of the real estate sector. Accordingly, this research paper presents a dynamic conceptual model for a system dynamics (SD) model that captures the dynamic feedback structures that govern the real estate environment, including those driven by behavioral biases. A causal loop diagram (CLD) has been developed, as part of the SD model conceptualization, to capture the dynamic factors which can potentially impact the housing market and the causal relationships between them, including those related to the consumer, developer, and government. The real estate market in Egypt has been used to verify the model’s structure, as it has witnessed many fluctuations recently which makes it a good candidate for the study. The developed CLD, in this research, can be potentially used as a standalone mental model that maps the feedback structure of the residential real estate market sector. It can help policymakers visualize and understand the underpinning factors behind the dynamic behavior of the market growth, and thus make better decisions.
Introduction. The modern economy is going through an era where information has become not only an important resource, but also a key factor in decision-making. The need to process large data sets and their growing number, access to a wide range of information resources and the speed of their distribution create not only new opportunities, but also bring challenges associated with anomalies in the economic behavior of information users. The relevance of the research lies in the fact that these anomalies affect the efficiency of financial markets, risks for business and investors, and also pose a threat to the stability of the economic environment as a whole. Uneven access to information (information asymmetry), distortions in the perception of data and emotional reactions can lead to unfounded decisions and undesirable consequences. Understanding the nature of these anomalies and developing strategies to manage them become critical tasks for economic science and practice. In this context, the study of anomalies in the economic behavior of users of accounting information becomes not only an academic challenge, but also a significant task for practical application aimed at improving the efficiency of management decision-making processes and accounting and information management methods. The purpose of the research. Study, analysis and systematization of anomalies in the economic behavior of information users in order to determine their nature, factors of occurrence and consequences for the functioning of the economy, as well as the development of recommendations for management strategies of anomalous behavior of economic agents and the use of appropriate analysis tools to reduce its negative consequences. Methods. To achieve the goal, general scientific methods of cognition were used, namely: dialectical method of cognition, monographic and logical analysis, empirical methods, methods of comparison, extrapolation and generalization. The results. As a result of the research, a wide range of anomalies in the economic behavior of information users was identified and analyzed. Aspects identified include the variety of types of anomalies, the main factors that determine them, and their impact on financial markets and decision-making processes. The results of the analysis provide important information for the development of risk management strategies and the formulation of regulatory policies in an economic environment facing anomalous behavior of information users. Prospects. Prospects for the study of anomalous economic behavior consist in the development and improvement of analytical methods in the economy to identify anomalies, improve management strategies, and improve the methods of creating information resources for business in the accounting system. This will allow more effective detection and control of anomalies, ensuring the stability and efficiency of economic systems in a dynamic world.
As a social species, humans live in complexly bounded social groups. In order to navigate these networks, humans rely on a set of social–cognitive processes, including social working memory. Here, we designed a novel network memory task to study working memory for social versus non-social network information across 241 participants (18–65 years) in a tightly controlled, preregistered study. We show that humans demonstrate a working memory advantage for social, relative to non-social, network information. We also observed a self-relevant positivity bias, but an ‘other’ negativity bias. These findings are interpreted in the context of an evolutionary need to belong to one’s social group, to identify risks to one’s social safety and to appropriately track one’s social status within a complex network of social relationships.
We develop a location analysis spatial model of firms' competition in multi-characteristics space, where consumers' opinions about the firms' products are distributed on multilayered networks. Firms do not compete on price but only on location upon the products' multi-characteristics space, and they aim to attract the maximum number of consumers. Boundedly rational consumers have distinct ideal points/tastes over the possible available firm locations but, crucially, they are affected by the opinions of their neighbors. Proposing a dynamic agent-based analysis on firms' location choice we characterize multi-dimensional product differentiation competition as adaptive learning by firms' managers and we argue that such a complex systems approach advances the analysis in alternative ways, beyond game-theoretic calculations.
This paper describes an experimental survey of insurance preferences, administered to college students and clients of an insurance agency. Expected utility theory is contrasted with prospect theory, a recently developed alternative model of choice. The results lend more support to prospect theory than utility theory. However, insurance decisions appear more complex than either model suggests. The findings support earlier field and laboratory studies highlighting people's limited abilities to process information. Further research is needed to understand better the influence of financial status, statistical knowledge, cognitive style, and context and format effects on insurance purchasing decisions.
This paper presents an experimental investigation of risk taking in the domain of losses. The results are partly compatible with expected utility theory, assuming an inflection point in the utility function over losses. However, overweighting of low probabilities and underweighting of high ones was observed, which runs counter to the expected utility model. Additionally, a strong context effect was observed in which choices presented in an insurance context were judged with greater risk aversion than mathematically identical choices presented as standard gambles. Both the normative and descriptive implications for expected utility theory are discussed.
Conducted 7 experiments to explore different ways of predicting frame choice by individuals and groups. The way in which a decision problem is framed can have strong and predictable effects on the perceived attractiveness of the options it offers. At times, the relative attractiveness of 2 options may be reversed as the result of a reframing that should make no difference at all. 957 Ss read a story problem about civil defense expenditures and various solutions framed in different ways. Results were generally discouraging for the prediction of individuals' choices and generally encouraging for the prediction of group choices. Ss preferred the gamble to the sure loss, no matter how it was worded. This result supports the prospect theory. (10 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The mental processes by which people construct scenarios, or examples, resemble the running of the simulation model. Mental simulation appears to be used to make predictions, assess probabilities and evaluate casual statements. A particular form of simulation, which concerns the mental undoing of certain events, plays an important role in the analysis of regret and close calls. Two rules of mental undoing are proposed. According to the downhill rule, people undo events by removing surprising or unexpected occurrences. According to the focus rule, people manipulate the entities on which they focus. The implications of the rules of undoing and mental simulation to the evaluation of scenarios are discussed. (Author)
Two recent models of risky decision making developed by Fishburn (Fishbijrn, P. C. 1977. Mean-risk analysis with risk associated with below-target returns. Amer. Econ. Rev. 67 116--126.) and by Kahneman and Tversky (Kahneman, D., A. Tversky. 1979. Prospect theory: an analysis of decisions under risk. Econometrica 47 262--291.) have emphasized the importance of a target return or a reference point in determining preferences and choices among gambles. Target returns and reference points represent variations on the concept of an aspiration level, an old idea in theories of decision making. Additional evidence on the need to incorporate such a concept in the analysis of risky choice behavior is presented in this paper. In three experiments, the relationship of pairs of gambles to an assumed reference point was varied by adding or subtracting a constant amount from all outcomes. The results demonstrate that such translations of outcomes can result in the reversal of choice within pairs of gambles. The effect of such translations on choice depended on whether the size of the translation was sufficient to insure that one gamble in a pair had outcome values either all above or all below the reference point, while the other gamble had outcome values both above and below the reference point. A model of the effects of a reference point on risky choice behavior is presented and the results are also discussed in terms of the Fishburn and Kahneman-Tversky models, as well as other theories of risky decision making.
The economic theory of the consumer is a combination of positive and normative theories. Since it is based on a rational maximizing model it describes how consumers should choose, but it is alleged to also describe how they do choose. This paper argues that in certain well-defined situations many consumers act in a manner that is inconsistent with economic theory. In these situations economic theory will make systematic errors in predicting behavior. Kanneman and Tversey's prospect theory is proposed as the basis for an alternative descriptive theory. Topics discussed are: undeweighting of opportunity costs, failure to ignore sunk costs, scarch behavior choosing not to choose and regret, and precommitment and self-control.
Thirty empirically assessed utility functions on changes in wealth
or return on investment were examined for general features and susceptability
to fits by linear, power, and exponential functions. Separate fits
were made to below-target data and above-target data. The usual "target"
was the no-change point. The majority of below-target functions were
risk seeking; the majority of above-target functions were risk averse;
and the most common composite shape was convex-concave, or risk seeking
in losses and risk averse in gains. The least common composite was
concave-concave. Below-target utility was generally steeper than
above-target utility with a median below-to-above slope ratio of
about 4.8. The power and exponential fits were substantially better
than the linear fits. Power functions gave the best fits in the majority
of convex below-target and concave above-target cases, and exponential
functions gave the best fits in the majority of concave below-target
and convex above-target cases. Several implications of these results
for decision making under risk are mentioned.
I. Introduction, 189.—II. Equilibria in models without learning—the case of knowledge, 191.—III. Equilibrium in models with
learning, 196.—IV. Empirically observed distributions of prices quoted by different sellers, 204.—V. Qualifications, implications,
and conclusions, 205.
Rational choice involves two guesses, a guess about uncertain future consequences and a guess about uncertain future preferences. Partly as a result of behavioral studies of choice over a twenty-year period, modifications in the way the theory deals with the first guess have become organized into conceptions of bounded rationality. Recently behavioral studies of choice have examined the second guess, the way preferences are processed in choice behavior. These studies suggest possible modifications in standard assumptions about taste and their role in choice. This paper examines some of those modifications, some possible approaches to working on them, and some complications.
We sought to characterize patients' preferences in drug therapy decisions with uncertain outcomes by analyzing their responses to hypothetical therapeutic scenarios. In each scenario, the patient chose between two drugs with equivalent effects, one having two possible outcomes occurring by chance (uncertain outcome) and the other having a single outcome (certain outcome). Most patients chose a certain and intermediate therapeutic effect rather than taking a chance between no effect and a very large favorable effect. When the outcomes were adverse drug effects, there was a strong opposite trend. Rather than preferring a certain and intermediate adverse drug effect, most patients were willing to risk a possible severe drug side effect in order to have a chance of experiencing no adverse reaction. Thus, patients' willingness to accept risks in therapy decisions involving uncertain outcomes may depend on whether the outcomes are favorable or unfavorable.
We investigated how variations in the way information is presented to patients influence their choices between alternative therapies. Data were presented summarizing the results of surgery and radiation therapy for lung cancer to 238 ambulatory patients with different chronic medical conditions and to 491 graduate students and 424 physicians. We asked the subjects to imagine that they had lung cancer and to choose between the two therapies on the basis of both cumulative probabilities and life-expectancy data. Different groups of respondents received input data that differed only in whether or not the treatments were identified and whether the outcomes were framed in terms of the probability of living or the probability of dying. In all three populations, the attractiveness of surgery, relative to radiation therapy, was substantially greater when the treatments were identified rather than unidentified, when the information consisted of life expectancy rather than cumulative probability, and when the problem was framed in terms of the probability of living rather than in terms of the probability of dying. We suggest that an awareness of these effects among physicians and patients could help reduce bias and improve the quality of medical decision making.
The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes
produce predictable shifts of preference when the same problem is framed in different ways. Reversals of preference are demonstrated
in choices regarding monetary outcomes, both hypothetical and real, and in questions pertaining to the loss of human lives.
The effects of frames on preferences are compared to the effects of perspectives on perceptual appearance. The dependence
of preferences on the formulation of decision problems is a significant concern for the theory of rational choice.
Analysis of decision making under risk has been dominated by expected utility theory, which generally accounts for people's actions. Presents a critique of expected utility theory as a descriptive model of decision making under risk, and argues that common forms of utility theory are not adequate, and proposes an alternative theory of choice under risk called prospect theory. In expected utility theory, utilities of outcomes are weighted by their probabilities. Considers results of responses to various hypothetical decision situations under risk and shows results that violate the tenets of expected utility theory. People overweight outcomes considered certain, relative to outcomes that are merely probable, a situation called the "certainty effect." This effect contributes to risk aversion in choices involving sure gains, and to risk seeking in choices involving sure losses. In choices where gains are replaced by losses, the pattern is called the "reflection effect." People discard components shared by all prospects under consideration, a tendency called the "isolation effect." Also shows that in choice situations, preferences may be altered by different representations of probabilities. Develops an alternative theory of individual decision making under risk, called prospect theory, developed for simple prospects with monetary outcomes and stated probabilities, in which value is given to gains and losses (i.e., changes in wealth or welfare) rather than to final assets, and probabilities are replaced by decision weights. The theory has two phases. The editing phase organizes and reformulates the options to simplify later evaluation and choice. The edited prospects are evaluated and the highest value prospect chosen. Discusses and models this theory, and offers directions for extending prospect theory are offered. (TNM)