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Framing and decision making
The framing effect happens when decision-makers choose opposite solutions for identical problems based on how the issues are presented to them.
For example:
- Time and money management: A study found that 93% of students registered early when presented with a penalty fee for late registration, vs 67% doing so when it was presented as a discount for early registration.
- Economics: More people will support an economic policy where the employment rate is highlighted (10% employment rate) than if the unemployment rate is emphasised (90% unemployment rate).
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The framing effect is a cognitive bias where people decide on options based on whether they are presented in a positive or negative way. Do you prefer your yoghurt with 10% fat or 90% fat-free?
- Consider the current frame: Be aware of marketing language when you are shopping for a product.
- Reverse the frame: Take the current frame and state it in the opposite way.
- Reframe the options: There may be more than two al...
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