We describe the DRIFT model, a heuristic description of framing effects in intertemporal choice, and four experiments testing its implications. In the experiments we vary how outcomes are framed – either as total interest earned, as the rate of interest or, as is traditionally done in studies...

Markowitz hypothesized a fourfold pattern of risk preferences, with risk aversion for large gains and small losses, but risk seeking for small gains and large losses. We test his hypothesis, and obtain two major results. One is the dispersion effect: A majority exhibits risk seeking and risk...

Markowitz (Journal of Political Economy 60:151–158, <CitationRef CitationID="CR27">1952</CitationRef>) identified a fourfold pattern of risk preferences in outcome magnitude: When outcomes are large, people are risk averse in gains and risk seeking in losses, but risk preferences reverse when the outcomes are small, with people...</citationref>