Framing Effect, The : How Information Presentation Affects Decision-Making - William Rands

Framing Effect, The

How Information Presentation Affects Decision-Making

Author: William Rands

Narrated by: Alice Venderra

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Published: 26th January 2025

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The framing effect is a psychological phenomenon in which the way information is presented influences the decisions and judgments individuals make. Whether through subtle word choices, visual cues, or contextual manipulation, the manner in which something is framed can have a profound impact on how we perceive it and how we respond. This effect reveals that our decision-making processes are not purely logical or objective, but rather, they are shaped by cognitive biases and the surrounding context.

At the core of the framing effect lies the idea that people's decisions can be swayed based on how the same information is presented. For example, a medical treatment may be described as having a "90% success rate" versus a "10% failure rate." Despite both statements conveying the same information, the first frame is more likely to encourage a positive decision, while the second may induce hesitation or fear. This difference is a result of how the human brain reacts more favorably to positive frames and tends to avoid losses more strongly than it seeks gains, a concept rooted in loss aversion.

The framing effect highlights how context and language play powerful roles in shaping perception. It operates on the principle that human cognition is not purely rational, but is instead influenced by emotional, social, and psychological factors. This phenomenon often operates beneath our awareness, meaning individuals can be unaware of how they are being influenced by framing.

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