Barberis, Nicholas; Huang, Ming; Thaler, Richard H. - In: American Economic Review 96 (2006) 4, pp. 1069-1090
We argue that ?narrow framing,? whereby an agent who is offered a new gamble evaluates that gamble in isolation, may be a more important feature of decisionmaking than previously realized. Our starting point is the evidence that people are often averse to a small, independent gamble, even when...