Effects of valence and framing in decision making II: Estimating subjective weighting

In comparison between choice options, judgments of “How much better is a preferred option?” and “How much worse is a less preferred option?” may differ in their magnitudes. Such discrepancies are called “valence effects.” Previously, Yamagishi and Miyamoto (1996) observed systematic positive valence effects (“Better” exceeding “Worse”) in the domain of gains and systematic negative valence effects (“Worse” exceeding “Better”) in the domain of losses. The current experiment used the directions of valence effects as a tool to assess the decision maker’s interpretation of choice tasks under the “framing effect” (Tversky & Kahneman, 1986). Preferences under the framing effect switch from certain options in the domain of gains to uncertain options in the domain of losses. This study examined whether preferences for certain options were associated with positive valence effects, whereas preferences for uncertain options were associated with negative valence effects. Moreover, conditions under which preference reversals under the framing manipulations ceased to occur were examined. The effects of valence showed that framing effects ceased to occur when decision makers maintained consistent task interpretations as pertaining to gains or to losses. Most importantly, the pattern of subjective weighting under the valence effects was consistent with previous explanation of valence effects (Yamagishi & Miyamoto, 1996). Possibilities for extending the current findings to understanding related psychological phenomena are discussed.