The Effect Of Psychological Distance And Gain-Loss Frames On Ambiguity Aversion

Ambiguity aversion refers to a kind of decision preference that individuals are inclined to avoid the ambiguous options when considering and weighing th ose of same expected value.Although the phenomenon of ambiguity aversion has been widely validated in investment decision,medical decision,insurance purchase decision and other fields since it was presented,previous studies belie ved that people do not always appear ambiguity aversion because it might be r educed and eliminated by other factors.Combined with contextual questionnaires,behavioral experiments and the methods of eye movement study,this study sets out to explore the influence of psychological distance,gain and loss frame on ambiguity aversion and its p sychological mechanism.The study is divided into 3 parts: In study 1,by me ans of adapting contextual questionnaires and manipulating the four dimensions of psychological distance,the influence of psychological distance on ambiguit y aversion is briefly discussed and the similarity of different psychological dist ance dimensions to the influence of ambiguity aversion was compared.In stud y 2,the experimental paradigm of Ellsberg bottle selection is used.Probabilit y is applied to manipulate psychological distance and the results of gain and loss are presented to control the framework with the intention of discussing the effect of these two factors on ambiguity aversion.Apart from the same metho ds used in study 2 to manipulate psychological distance and the gain and loss framework,Study 3 is carried out through the eye movement research experim ent.The total fixation time and gaze point are also collected in decision makin g process.Taking all these factors into account,the study makes a discussion on the psychological mechanisms under the influence of the profit and loss fra mework and psychological distance.The main findings are as follows:(1)The psychological distance has a significant influence on ambiguity aver sion,individuals are more inclined to avoid the ambiguous options when psych ological distance is closer;(2)The influence of different psychological distances on ambiguity aversion has similarity;(3)The gain and loss framework has a significant influence on ambiguity a version.Compared with the loss framework,individuals show a tendency to e av oid the ambiguous options in the gain frame;(4)Framing effect is influenced by psychological distance,the farther the p sychological distance is,the stronger the framing effect is.