ABSTRACT Title:                         Lucrative deals How service offers and its clients is forms by Optional Framing                 Level:                       Bachelor, Business Administration Author:                     Gabriel Krogius, Mikaela Sörensen Supervisor:              Jonas Kågström, department of economics Date:                         2013, August Introduction:           That the human mind may be directed by how an offer is designed is not news. However, what is new in the following thesis is whether a person is affected in the case of a service rather than, as previously research, a physical product. Does a person find it harder to separate with something rather than to add an option? Aim:                          The aim for this thesis is to examine how Optional Framing has affection on service offerings/companies, and in this case on real estate brokerage services. Is it, as earlier, when the human can form her own offer, the final price ends up higher when she is about to add options than removing them? Method:                    The thesis emanates to achieve earlier results where the difference in this case is that our thesis is targeting service offerings. It applies through a positivistic deductive method. The empirical data is collected from a quantitative sample of survey answers, where one part of the groups is faced to remove options from a deluxe-offer and the other part of the group is about to add options to a standard-offer. The survey was created with episodic support from a sample of interviews with active real estate agents. Discussion:               The thesis shows that earlier results approve within service companies and its offers, in this case real estate brokerage. We can interpret that the human mind is directed through Optional Framing and that the deluxe-offer ends with a higher price and more options to it than the standard-offer. The correlation analysis shows us connection between some of the offers services that can benefit real estate brokerage in the future. Future research:     We hope that foundations have been created for future research that can lead on to further understanding about the customers view on real estate brokerage services and how to make them more attractive. Contribution:           Real estate brokerage can benefit from the results in this thesis where they further can implement the work from comparison of theory and empirical.  Key words:              Loss Aversion, The Endowment Effect, Status Quo Bias and also Framing/Optional Framing.

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Smart phones are an important facet of the functionality of daily life. The main smart phone operating systems are Android and iOS. We cannot predict which one will be the winning smart phone operating system in the future. Hence, it is an important issue for consumers and enterprises to know which factors influence consumers to continue to use Android. We construct a dual factor model to explain consumers¡¦ Android use continuance. The dual factors include (1) dedication vs. constraint, (2) cognitive constraints vs. psychological constraints, and (3) internal lock effect vs. external lock effect. Data collected from 296 Android consumers in Taiwan were tested against the research model and confirmed our hypotheses. The results support the theoretical model in explaining the effect of ECT theory and status quo bias theory on consumers¡¦ intentions to continue to use Android. Finally, we find inertia is the most important factor influencing consumers¡¦ continued use of Android. The main contribution of this study is to provide a dual factor model for consumers¡¦ use continuance behavior. This model can also be applied to different technology products.

Debating over efficiency-enhancing but inequality-increasing reforms accounts for the routine business of democratic institutions. Fernandez and Rodrik (1991) hold that anti-reform bias can be attributed to individual-specific uncertainty regarding the distribution of gains and losses resulting from a reform. In this paper, we experimentally demonstrate that anti-reform bias arising from uncertainty is mitigated by social preferences. We show that, paradoxically, many who stand to lose from reforms vote in favor because they value efficiency, while many who will potentially gain from reforms oppose them due to inequality aversion. (authors' abstract) / Series: Department of Economics Working Paper Series

Debating over efficiency-enhancing but inequality-increasing reforms accounts for the routine business of democratic institutions. Fernandez and Rodrik (1991) hold that anti-reform bias can be attributed to individual-specific uncertainty regarding the distribution of gains and losses resulting from a reform. In this paper, we experimentally demonstrate that anti-reform bias arising from uncertainty is mitigated by social preferences. We show that, paradoxically, many who stand to lose from reforms vote in favor because they value efficiency, while many who will potentially gain from reforms oppose them due to inequality aversion.

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The aim of this study was to examine associations between biases in decision-making (delay discounting [DD], opportunity cost neglect [OCN], status quo bias [SQB]), educational attainment, and use of cigarettes and other tobacco and nicotine delivery products among women of reproductive age. Women of reproductive age are of special interest because of the additional risks that cigarette smoking or use of these other products represents should they become pregnant. Data were collected anonymously online in survey format using Amazon Mechanical Turk [AMT]. Participants were 800 women of reproductive age (24-44 years) from across the US. Half (n = 400) were smokers who reported current, daily smoking and half (n = 400) were never smokers who reported smoking less than 100 cigarettes in their lifetime. Participants reported smoking characteristics, plans to quit smoking, use of nicotine replacement therapies, use of other tobacco and nicotine delivery products, alcohol and drug use histories, and the Fagerström Test for Nicotine Dependence. Participants completed two measures for each of the three biases in decision-making, the Barratt Impulsiveness Scale [BIS-11], and two scales measuring short- and long-term propensity to plan for money expenditures [PPMS and PPML]. Educational attainment analyses compared three education groups: high school or less vs. some college (e.g. some college/A.A.) vs. B.A. or higher. DD was steeper among current vs. never smokers and for women with lower vs. higher levels of education, with no significant interaction between smoking and education. Modifying the instructions of the DD measure to make the zero option explicit reduced DD similarly across levels of smoking status and education. OCN was worse at lower vs. higher educational attainment on one OCN measure, with no significant effect of smoking status or interaction between opportunity cost neglect and educational attainment on either measure. No evidence was found for stronger SQB by smoking status or education. Smoking status was related to BIS Total, BIS Motor and Nonplanning subscales and to PPML in initial models but remained significant after adjusting for baseline differences in participant characteristics only for BIS Motor subscale and educational attainment was related only to BIS Nonplanning subscale. Preliminary comparisons of e-cigarette users to non-users suggest smokers using e-cigarettes only differ from smokers not using e-cigarettes on measures related to quitting smoking whereas within never smokers e-cigarette users demonstrated a pattern of riskier decision-making compared to non-users. Results confirm that DD and education are important to understanding the use of tobacco and nicotine products in women of reproductive age, and suggest that smoking and educational attainment are independently related to discounting rates. The observed explicit-zero framing effect suggests making alternatives more explicit when presenting choices may help reduce DD and lead to better decision-making, which has possible treatment implications. Results identify OCN as an additional decision-making bias to consider in understanding how low educational attainment might relate to smoking vulnerabilities. The preliminary examination of e-cigarette use suggests for women of reproductive age above age 24 years, e-cigarette use among current smokers may reflect desire or attempts to quit or cut back on smoking whereas e-cigarette use among non-smokers may be a marker of a more impulsive, riskier repertoire, although additional study of this question is needed.

This dissertation argues that public opinion regarding the acceptability and desirability of income differences is affected by actual income inequality. Cross-national survey evidence is combined with laboratory and survey experiments to show that estimates regarding appropriate income differences depend on (perceptions of) real income differences. When income inequality changes, public opinion "habituates" by adjusting expectations for fair levels of inequality in the same direction as the factual change. The adjustment occurs because humans are subject to status quo bias and have a motivated tendency to believe in a just world. In the context of increasing inequality in developed democracies over the last 40 years, the implication is that normative expectations for appropriate levels of inequality have adjusted up. This habituation process helps explain why increases in inequality have not been accompanied by increased demands for redistribution and why cross-national variation in income inequality is not clearly linked to public opposition to such inequality. / Government

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The Covid-19 pandemic and the Swedish strategy when dealing with the crisis, have shown that a status quo bias can be highly damaging for bioethical decision-making. The pandemic presented a situation of high levels of uncertainties, where incomparable values such as health and freedom, were being put against each other. Because of this, mathematically oriented utility calculations or maximin principles such as the Precautionary Principle, recommended by the Swedish Corona-Commission, were not applicable. This I conclude since the Precautionary Principle cannot be applied when the outcomes of different alternatives are not comparable in value-terms. To answer the question of what signifies good bioethical decisionmaking during a crisis, risk and uncertainties I therefore present a five-step Crisis Checklist intended to give an overview of what a bioethical decision should entail. / Covid-19 pandemin, och den svenska strategin för att hantera krisen, har visat att ett status quo bias kan vara mycket skadligt för bioetiskt beslutsfattande. Pandemin utgjorde en situation med höga nivåer av osäkerhet, där ojämförbara värden så som hälsa och frihet ställdes mot varandra. På grund av detta var matematiskt orienterade nyttoberäkningar eller maximin principer så som Försiktighetsprincipen, rekommenderad av den svenska Coronakommissionen, inte applicerbara. Detta eftersom Försiktighetsprincipen inte är applicerbar när resultaten av de olika handlingsalternativen inte är jämförbara i värde-termer. För att besvara frågan om vad som utmärker bra bioetiskt beslutsfattande i en kris, under risk och osäkerhet presenterar jag därför en fem-stegs kris-checklista i syfte att ge en överblick till vad ett bioetiskt beslut bör innefatta.