Framing Effects and Confidence in Judgment Available to Purchase

This paper addresses the relationship between framing effects and decision makers' confidence in their judgments. In an experimental setting, a sample of financial officers of sixty medium size organizations were asked to evaluate the likelihood of making an investment in a series of four joint ventures for oil and gas exploration based on different sets of probabilities and payoff information for each joint venture. Subjects were also asked to provide a rating of confidence in their judgment. The results indicate that subjects' rating of the likelihood of making investment decisions are affected by information frame and payoff information. However, confidence ratings were not significantly affected by information frame.