Don't like the picture? Change the frame: the impact of cognitive ability and framing on risky choice

This article identifies the effect a perceived upfront cost (UFC) has on the subsequent risky choice of older Americans with varying levels of cognitive ability. When respondents are faced with outcome alternatives framed with and without a UFC, we observe variation in respondents' required outcomes based on the order in which the two frames are presented. We provide evidence that among respondents with lower cognitive ability, losses need not be realized to affect subsequent risky choice, and that a UFC lowers the willingness to take risk in a future period.