The Influence of Positive and Negative Framed Information Load: An Experimental Investigation

Abstract

The purpose of this paper is to test the effect of three information attributes—the framing of information as positive or negative, the symmetry and non-symmetry of information sets, and the quantity of information on individual choices—when choosing between two lotteries. The main effects from a random effects probit model indicate that the quantity of information and symmetry of information influence individual choices over lotteries. When presented with negative information, individuals exhibit less switching behavior between two lotteries. One possible explanation for our result is that a negativity bias is present when information is framed negative which causes individuals to behave differently across lotteries regardless of the quantity of information.