The first–second language influence on framing effects and loss aversion of balanced bilinguals

Abstract

Aims:We aimed to investigate the effects of language on the decision-making of bilinguals when they possess almost equal proficiencies in these languages.Methodology:Chinese–English bilinguals were asked to make decisions in Chinese or English. In the first experiment, we used a financial crisis problem to investigate the effects of language on the framing effect. In the second experiment, we used two gambling tasks to investigate the effects of language on people’s loss aversion in hypothetical and real bets.Data and analysis:Participants had similar proficiencies in Chinese and in English. Two hundred and twelve Chinese–English bilinguals took part in the first experiment. Their decision data were analysed using chi-squared tests. Ninety-six Chinese–English bilinguals took part in the second experiment. Their decision data were analysed using ANOVA and t-tests.Findings:Framing effects were reduced in the English condition. Chinese–English bilinguals were risk-averse for gains and risk-seeking for losses when choices were presented in Chinese, but this asymmetry disappeared when the choices were presented in English. However, the results indicated that the language did not have significant effects on Chinese–English bilinguals’ loss aversion in hypothetical and real bets.Originality:This is among the first studies to investigate the effects of language on decision-making in balanced bilinguals who have similar proficiencies in different languages.Significance/implications:The findings suggest that language still influences the framing effect, even in balanced bilinguals who have similar proficiencies in different languages.