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Framing Effect

Definition 1

Impact on the likelihood of choice option selection associated with the method of or context within which options are presented. For example, risky choice framing would be represented by presenting the identical likelihood of winning but in terms of both winning and losing (i.e., the likelihood of winning is 30 out of 100 cases, but the likelihood of losing is 70 out of 100 cases).

Source: Behavioral Science Lab, 2017

Definition 2

Choices can be presented in a way that highlights the positive or negative aspects of the same decision, leading to changes in their relative attractiveness. This technique was part of Tversky and Kahneman’s development of prospect theory, which framed gambles in terms of losses or gains (Kahneman & Tversky, 1979). Different types of framing approaches have been identified, including risky choice framing (e.g. the risk of losing 10 out of 100 lives vs the opportunity to save 90 out of 100 lives), attribute framing (e.g. beef that is 95% lean vs 5% fat), and goal framing (e.g. motivating people by offering a $5 reward vs imposing a $5 penalty) (Levin et al., 1998).

Source: Behavioral Economics

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