An Experimental Study Of Framing And Certain Effect In Risk Decision-Making

The different describing ways can cause the decision makers to have the different risk preferences to the same problem, the phenomenon were called framing effect. An S-shaped value function and a nonlinear weighing function were employed by the prospect theory to explain and predict the framing effect. Certain effect, which is refer to people usually prefer certain result compared to possible function at first in judging and decision-making.The research employed undergraduates and employees in Guangzhou city, and make use of insurance investment for background to design decision-making problem. The four experiments all use 2×2×3 factor design, in order to thoroughly investigate the framing and certain effects influence on judging and decision-making, different decision makers, gain-loss background, probability levels how to impact. Whether change existing conclusion about framing effect under impact of certain effect. Open out the impact on decision-making caused by framing and certain effect. According to judgment on preference style of decision-making to dig for decision makers' personality how to affect these behaviors. The results indicated, judging of undergraduates differentiate from employee in enterprise, framing effect exist in students group; at the same time, employees present no impact. Secondly, in low probability level, certain effect has great influence on decision-making; at the other hand, framing demonstrate more in middle and high probability level. Choice preference of people will change along with variety of probability, the conclusion indicate deal with decision making problem should distinguish different probability conditions. Existence of neutralism in decision making that enriches division to characteristics of public. Cautious decision makers in campus are easier disturbed by framing and certain factors. Male must be sensitive to gain and female to loss.