Examining framing effect when subject's perspective matters: Evidence from China

In decision-making research, people's perspectives have received little attention to date. However, by looking at the risky-choice framing effect, results from our experiment suggest that beyond personality traits, the subject's perspective is an important factor in the decision-making process. The effect of perspective was apparent and persisted among the students with higher numeracy. This finding contradicts previous work which states that highly numerate individuals are less susceptible to framing effects, putting forth a number of future research directions on practical financial implications.