Framing of decision problem in short and long term and probability perception

Abstract

Consumer preferences are dependent on problem framing and time perspective. For experiment’s participants avoiding of losses was less probable in distant time perspective than in near term. On the contrary, achieving gains in near future was less probable than in remote time. One may expect different reactions when presenting problem in terms of gains than in terms of losses. This can be exploited in promotion of highly desired social behaviours like savings for retirement, keeping good diet, investing in learning, and other advantageous activities that are usually put forward by consumers.

Keywords

• probability perception
• framing
• time
• miopia
• hyperopia