What if versus probabilistic scenarios: a neuroscientific analysis
Nowadays financial products are extremely complex and the decision to choose among them could represent a stressful event for individuals. Information related to the risk/return profile of an investment instrument and the way it is represented (framing effect) are crucial in determining the outcome of individuals’ decisions. In this paper we consider two schemes that can be employed to represent the random performances of risky financial products, namely the what if and probabilistic scenarios frames.