Hossain, T., & List, J. A. (2012) The behavioralist visits the factory: Increasing productivity using simple framing manipulations

Question 1

GOAL

Answer 1

Can behavioral insights, such as simple framing manipulations, have economically significant effects in the field?

Question 2

Framing

Answer 2

Framing: The manner in which a choice set is presented
- Reference-dependent decision making

Question 3

Reward vs Punishment

Answer 3

They measure based on comparison:
- Reward (if threshold then bonus)
- Punishment (bonus first, if no threshold, bonus taken)

Loss aversion theory: the tendency to avoid losses over achieving equivalent gains
 Thus, punishment should work better than reward

Question 4

When is framing stronger?

Answer 4

Framing is stronger in groups than in individuals
- You don’t want the be the cause of losing the bonus
- Guilt aversion