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).