This study aims to identify the potential irrationality in the personal investment decision-making habits of university students, as influenced by the framing effect, loss aversion, and related heuristics. Researchers conducted a cross-sectional study of 114 students (n = 102). Participants responded to a survey regarding their willingness to invest in certain hypothetical investment scenarios. Outcome was measured primarily using Likert scales and yes
o binomial options regarding the participant’s willingness to participate in a specific deal. The study was broken into three blocks, the first of which dealt with the framing effect and the subsequent two considered loss aversion. Of the data collected, there were multiple significant results found to support the framing effect and loss aversion. There was a significant difference between responses that were positively and negatively framed, and between varying upside potential in equivalent-risk scenarios. For block one, those participants who received the positive framing condition were more likely to invest in the master’s program than those who received the negative framing condition. For blocks two and three, the majority of participants exhibited loss averse behavior more extreme than the predicted amounts; closer to 4x the upside was required (rather than the predicted 2x) for the participants to participate in the deal. Although the results did replicate the framing effect and loss aversion, college students were more loss averse than was predicted.