Risk preferences in decision-making: A construal level perspective

Acta Psychol (Amst). 2024 Dec 21:252:104675. doi: 10.1016/j.actpsy.2024.104675. Online ahead of print.

Abstract

This study examines the impact of construal levels on preferences for risky choices in decision-making scenarios, focusing on how situational framing moderates these effects. We explored the role of construal level as a key moderator of the influence of risky-choice framing. Our findings show significant differences in preferences for risky options between gain- and loss-framing, especially in high-level construal contexts. This finding suggests that abstract thinking enhances framing effects, highlighting important implications for understanding decision-making processes and developing interventions to reduce bias. Conversely, this preference difference diminishes significantly under low-level construal, where focus on specific details, such as probability, is emphasized. The research reveals that framing influences attention allocation toward outcomes and processes in high-level construal but has a lesser effect in low-level construal. These results indicate that construal levels are crucial for shaping perception and framing effects. The study concludes with a discussion of the implications and recommendations for future research.

Keywords: Construal level theory; Decision-making context; End-state; Information focus; Process; Risky-choice framing effect.