LOOKING CLOSER AT THE EFFECTS OF FRAMING ON RISKY CHOICE - AN ITEM RESPONSE THEORY ANALYSIS

Item response theory (IRT) methodology allowed an in-depth examination of several issues that would be difficult to explore using traditiona l methodology. IRT models were estimated for 4 risky-choice items, ans wered by students under either a gain or loss frame. Results supported the typical framing finding of risk-aversion for gains and risk-seeki ng for losses but also suggested that a latent construct we label pref erence for risk was influential in predicting risky choice. Also, the Asian Disease item, most often used in framing research, was found to have anomalous statistical properties where compared to other framing items. (C) 1998 Academic Press.