Factors influencing the framing of probabilistic risk information

The way in which probabilistic information is framed has an effect on risky decision-making. Typically, the bias created through information framing in Asian disease-type problems results in risk-averse decisions associated with a negative frame and risk-seeking decisions associated with a positive frame. Three laboratory experiments are reported that investigate quantity of information and format of probabilistic information on risk perceptions and decision-making using Asian disease-type problems. Experiment 1 demonstrates an effect of quantity of information; however, the traditional framing effect only occurs using Tversky and Kahneman’s (1981) original manipulation. In Experiment 2a, no effect is found when the information is provided in numerical form, but there is an effect for a verbal format. In Experiment 2b, participants chose the least risky, positively framed options more frequently than the negatively framed options when presented with all possible outcomes. In conclusion, the way in which probabilistic risk information is presented has the potential to influence perceptions of risk and decision-making.