Home
Forms Library
The Influence of Framing on Willingness to Pay - gsb stanford

The Influence of Framing on Willingness to Pay - gsb stanford 2025

The Influence of Framing on Willingness to Pay - gsb stanford Preview on Page 1

See details

4.5 out of 5

68 votes

The document explores the 'uncertainty effect' (UE), where individuals value risky prospects less than their worst possible outcomes. It argues that this phenomenon is influenced by how options are framed, specifically noting that framing a prospect as a 'lottery' reduces willingness to pay (WTP) compared to framing it as a 'gift certificate'. Through a series of experiments, the authors demonstrate that framing affects WTP but not willingness to accept (WTA), suggesting that different frames evoke varying reference prices rather than altering subjective valuations. The findings challenge traditional views on risk aversion and highlight the importance of framing in decision-making under uncertainty.

Here's how it works

01. Edit your form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send it via email, link, or fax. You can also download it, export it or print it out.

How to use or fill out The Influence of Framing on Willingness to Pay - gsb stanford with DocHub

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Click ‘Get Form’ to open it in the editor.
Begin by reviewing the abstract section, which provides a concise overview of the study's findings. This will help you understand the context as you fill out the form.
Move to the 'Keywords' section and ensure that all relevant keywords are included. This is crucial for categorizing your document effectively.
In the main body, focus on filling out each experiment's details. For each experiment, provide your willingness to pay (WTP) responses based on different framing conditions.
Utilize our platform’s commenting feature to add notes or questions about specific sections, enhancing clarity and collaboration if needed.
Once completed, review your entries for accuracy and coherence before saving or sharing your document directly from our editor.

Start using our platform today for free and streamline your document editing process!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the framing effect in prospect theory?

To generate predictions consistent with the framing effect, prospect theory suggests that individuals frame decisions relative to a reference point, so that the marginal utility decreases as the decision outcome deviates from this reference point. (Kahneman Tversky, 1979; Tversky Kahneman, 1991, 1992).

What is the effect of framing on decision making?

The framing effect occurs when people react differently to something depending on whether it is presented as positive or negative. In other words, our decision is influenced by how the information is presented rather than what is being said.

What is the framing effect in shopping?

Its likely that you may have chosen to purchase one service or product over another that could be the same, or even better, simply because of the way it is presented to you. These types of decisions are made due to what is known as the framing effect. They are more frequent than you might think.

What is the framing effect?

The framing effect is a type of cognitive bias or error in thinking. Framing refers to whether an option is presented as a loss (negative) or a gain (positive). People are generally biased toward picking an option they view as a gain over one they view as a loss, even if both options lead to the same result.

What is framing in consumer behaviour?

However, in its relation to consumer behavior, framing can be defined as a persons reaction to a specific choice due to the way that it is presented. In this lesson were going to take a look at an example of framing and then address how framing effects consumer behavior.

What is the framing effect in gambling?

The framing effect is when people make decisions based on whether their choices are presented positively (as a gain) or negatively (as a loss).

What is the framing effect in consumer behavior?

The framing effect is when our decisions are influenced by the way information is presented. Equivalent information can be more or less attractive depending on what features are highlighted.

What is framing and give an example?

Framing is the way the information is presented. The way the information is presented can affect the decision made by taking advantage of typical cognitive bias. An example of this is putting the most important information first or what the company wants the customer to choose.