Question

In: Economics

Why do you think framing effects have so much influence over how we make decisions?

Why do you think framing effects have so much influence over how we make decisions?

Solutions

Expert Solution

The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented. In the situation, benefit and loss are represented as outcome descriptions (e.g., lives lost or saved, disease patients treated and not treated, etc.).

The principle of Prospect shows that a loss is more important than the comparable gain, that a certain gain (certainty effect and pseudocertainty effect) is favoured over a probabilistic gain, and that a probabilistic loss is preferable to a definite loss. One of the dangers of framing effects is that only one of the two frames frequently offers alternatives for individuals

The theory aims to build an appreciation of frame analysis within social movements, as well as in the development of political opinion where spin plays a major role in political opinion polling framed to facilitate a favourable response to the entity commissioned by the survey. It has been argued that the use of the methodology discredits political polling themselves.[5] If enough credible evidence is given to individuals, the impact is diminished, or even removed.


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