Explaining outcome type interactions with frame: Aspiration level and the value function

Abstract

Research on framing effects has revealed cases where the type of outcome at risk (e.g., human lives vs. animal lives) affects the magnitude of the framing effect. Some authors have appealed to the shape of the value function as predicting when framing effects will occur: The more valuable the outcome type, the more nonlinear its value function, and the larger the resulting framing effect (Levin & Chapman, 1990). However, having a more or less nonlinear value function cannot explain situations in which participants strongly prefer the same option in both frames. Another factor that may be at work in these types of outcome effects is an aspiration level (AL; Lopes, 1987; Schneider, 1992), which determines how acceptable the options are and combines (or competes) with the risk attitude encouraged by frame. The results described here indicate that differences in the shape of the value function between outcome types are evident but are inconsistent between framed losses and gains, though nonlinearity in the value function can be increased with a manipulation that also encourages framing effects. The results also demonstrate that an AL can lead to the same predominant risk preference in the positive and negative frame. These findings indicate that the shape of the value function and the AL each play a role in outcome type interactions with frame, and in some cases, a combination of the two factors may be at work.