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Monetary losses do not loom large in later life: age differences in the framing effect.

Studies of the framing effect indicate that individuals are risk averse for decisions framed as gains but risk seeking for decisions framed as losses. However, findings regarding age-related changes in susceptibility to framing are mixed. Recent work demonstrating age-related decreases in reactivity to anticipated monetary losses, but not gains, suggests that older and younger adults might show equivalent risk aversion for gains but discrepant risk seeking for losses. In the current study, older and younger adults completed a monetary gambling task in which they chose between sure options and risky gambles (the expected outcomes of which were equated). Although both groups demonstrated risk aversion in the gain frame, only younger adults showed risk seeking in the loss frame.