The Influence of Individualism-Collectivism on Risk Preference and Framing Effects

Zhang Keshun; Cao Wanjun; Guan Yichen; Wei Hua

doi:10.16719/j.cnki.1671-6981.20250513

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Journal of Psychological Science ›› 2025, Vol. 48 ›› Issue (5) : 1172-1184. DOI: 10.16719/j.cnki.1671-6981.20250513

Social, Personality & Organizational Psychology

The Influence of Individualism-Collectivism on Risk Preference and Framing Effects

Zhang Keshun, Cao Wanjun, Guan Yichen, Wei Hua

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Abstract

Cultural values are commonly classified into individualistic and collectivistic orientations and have long served as a foundation for explaining cross-cultural variations in cognition, behavior, and decision-making. Among the many cognitive processes influenced by culture, risk preference and framing effects have received increasing scholarly attention. However, despite a growing body of literature on cultural influences in decision-making, relatively few studies have specifically explored how cultural values influence individuals’ susceptibility to framing effects in risk-related contexts.
To address this gap, the present study employed the classic "Asian Disease Problem" paradigm, a widely used experimental framework in behavioral decision-making research, to investigate the psychological mechanisms through which cultural values influence framing effects. Grounded in the cushion hypothesis, which posits that collectivist cultures provide dense social support networks that buffer individuals from the negative consequences of risk-taking, this study examined whether individuals embedded in collectivist cultural contexts would demonstrate a greater propensity for risk-seeking under different framing conditions. Furthermore, based on psychological game theory, the study proposed a nonlinear (inverted U-shaped) relationship between cultural values and the strength of framing effects, such that in contexts with less distinctive cultural characteristics—neither strongly collectivist nor strongly individualist—the magnitude of the framing effect is higher.
To ensure the robustness and generalizability of the findings, three widely recognized cultural value indices were used as independent variables, with all scores standardized such that higher values reflected stronger collectivist orientations. The first index was Hofstede’s Individualism-Collectivism Score, covering 54 countries or regions with a total sample size of 90,999 individuals (score range: -182 to 291). The second was Schwartz’s Embeddedness Index, which captures the degree to which cultural norms emphasize preserving social harmony, resisting change, and valuing tradition (49 countries or regions; 90,806 participants; score range: 3.03 to 4.45). The third was the GLOBE Group Collectivism Index, reflecting the extent to which people are expected to prioritize the goals of close-knit in-groups (41 countries or regions; 87,301 participants; score range: 3.46 to 6.14). The dependent variable was participants’ risk preference as expressed in responses to the Asian Disease scenario. Control variables included individual-level factors (e.g., age, gender, and education level) and macro-level national indicators (e.g., Gross Domestic Product per capita, Human Development Index, and Gini coefficient).
The results were consistent across all three indices. Individuals from more collectivist cultures exhibited stronger tendencies toward risk-seeking behavior than those from individualistic cultures. Curve-fitting analyses confirmed that risk-seeking was more prevalent under loss frames than gain frames, aligning with prior research. Marginal effect analyses revealed an inverted U-shaped relationship between cultural values and the strength of framing effects, indicating that culturally moderate contexts were associated with the highest magnitude of the framing effect.
In conclusion, this study demonstrates that collectivist cultural values are generally associated with a greater inclination toward risk-taking, particularly under loss-framed scenarios. The curvilinear relationship between cultural orientation and framing strength provides empirical support for both the cushion hypothesis and psychological game theory. These findings contribute to a deeper cross-cultural understanding of risk-related decision-making and suggest that activating collectivist values, even within individualistic societies, may foster decisions that emphasize public interest and collective responsibility.

Key words

cultural values / framing effects / collectivism / individualism / risk preference

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Zhang Keshun, Cao Wanjun, Guan Yichen, Wei Hua. The Influence of Individualism-Collectivism on Risk Preference and Framing Effects[J]. Journal of Psychological Science. 2025, 48(5): 1172-1184 https://doi.org/10.16719/j.cnki.1671-6981.20250513

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