Description: Framing effect is a cognitive bias that occurs when people’s decisions are influenced by how information is presented, rather than by its objective content. This phenomenon is particularly relevant in the context of decision-making, where choices are based on potential outcomes and scenarios. The way these outcomes are framed can significantly alter behavior. For example, presenting a situation as a ‘50% discount’ may be more appealing than framing it as a ‘50% loss’, even though both options represent the same financial outcome. This bias also extends to ethics and bias in artificial intelligence, where the way data and decisions are presented can influence public perception and acceptance of technologies. Understanding the framing effect is crucial for designing AI systems that are fair and transparent, as the way results are communicated can affect trust and adoption of these technologies. In summary, the framing effect highlights the importance of information presentation in decision-making, both in human contexts and in automated systems.
History: The concept of framing effect was introduced by psychologists Daniel Kahneman and Amos Tversky in 1981, in their work on prospect theory. Their research demonstrated that people’s decisions can be drastically different depending on how information is presented, challenging the notion that individuals make rational decisions based solely on objective data. Since then, the framing effect has been the subject of numerous studies in psychology, economics, and social sciences, expanding its application to various areas, including decision-making in risky environments and public policy evaluation.
Uses: The framing effect is used in various fields, such as advertising, politics, and public health decision-making. In marketing, companies employ framing to influence consumers’ purchasing decisions by presenting products in a way that highlights their benefits or minimizes their drawbacks. In the health sector, the way risks and benefits of medical treatments are communicated can affect patients’ choices. Additionally, in politics, framing certain issues can shape public opinion and perception of specific policies.
Examples: An example of the framing effect in advertising is a campaign that presents a product as ‘90% fat-free’ rather than ‘contains 10% fat’. In the health sector, a study showed that patients were more likely to opt for surgery if told it had a 90% success rate instead of a 10% failure rate. In politics, a speech that frames a reform as ‘an opportunity for improvement’ may be more effective than one that presents it as ‘an urgent necessity’.
