The Framing Effect is a psychological tendency in which individuals respond differently to the same information, depending on whether it is framed as a gain or a loss. It shows that humans are not always rational decision-makers. Instead, they are highly influenced by language, working, context, and emotional cues.
EXAMPLE
Imagine a government health program presenting two options:
- Option A: Saves 200 lives
- Option B: Has a ⅓ chance of saving 600 lives and a ⅔ chance of saving no one
Most people choose Option A.
Now, reframe the options:
- Option C: 400 people will die
- Option D: ⅓ chance that nobody will die and ⅔ chance that 600 people will die
This time, most people choose Option D, even though A = C and B = D mathematically.
This shift proves how the framing effect changes decisions.
In everyday life, framing affects our choices in marketing, healthcare, politics, finance, research, and personal decision-making.
Understanding the framing effect helps you recognise persuasion tactics, avoid emotional manipulation, and make more rational, informed decisions.
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What is the Framing Effect?
The Framing Effect is a type of cognitive bias in which people make different decisions depending on how identical information is presented, rather than on the actual facts themselves.
This concept was extensively studied by psychologists Daniel Kahneman and Amos Tversky, who demonstrated that humans systematically violate rational decision-making models when information is framed emotionally.
When information is framed in terms of gains, people tend to make safer choices. When the same information is framed in terms of losses, people become more risk-seeking, even if the outcomes are objectively identical.
While businesses and advertisers use it strategically, the same effect can distort judgment in academic research, policy decisions, and scientific interpretation if left unchecked.
How does the framing effect work?
The framing effect works by shifting focus rather than altering facts. When information highlights:
- Positive outcomes → people prefer certainty and safety
- Negative outcomes → people tolerate risk to avoid loss
This explains why the same choice feels “safe” in one frame and “dangerous” in another.
Profit vs loss case
According to this case, if someone is allowed to choose between two options with the same profit or loss, they will ultimately select the profit option. If the loss is presented as a profit, they would happily choose it.
Profit vs Loss Example
Imagine a multinational company asking the general public to invest in and purchase its shares. To impact the decisions of investors, they will show two options in front of them, such as:
- There’s an 80% chance of an increase in the prices of shares
- There’s a 20% chance of a decrease in the prices of shares
As the second option indicates a loss, most people will not be ready to invest after seeing it. The first option suggests an 80% chance of success, so people are more likely to choose this option when it’s presented.
Causes of Framing Effect
Here are the key causes of the framing effect:
1. Method of presentation
The way information is presented significantly causes the framing effect. Slight changes in presentation methods highly affect the decisions of people. It depends upon whether the information is certain or probable.
For example, imagine a car dealership company asking customers to purchase a particular vehicle. They present two options in front of customers, such as:
Get £1500 on the purchase of the car
Get a 5% discount on the purchase of the car
People will more likely choose option one because it offers certainty of profit, even if the second option is more profitable.
2. Cognitive shortcuts
People are inefficient in processing and critically thinking about the information just presented to them. This inefficiency in making decisions leads to the framing effect. Instead of exploring other aspects of information, people prefer only the information that is immediately available to them.
For example, a shoe store offers a “buy one, get one free” offer. Most people will be inefficient in evaluating the whole scenario. They will consider it a profitable choice. They will not be highly conscious of the quality and durability of shoes.
3. Emotional clouding
People also make decisions based on their emotions (affect heuristic). When specific information is presented in a way that fulfils the emotional appeal of the people, there’s a high chance they will shift their preference from a rational choice to an emotional one.
For example, imagine an insurance company offering material insurance to its customers, “Insure your home with XYZ Insurance”. Most people will ignore the information they initially presented and won’t be interested in buying that insurance.
When the same company offers life insurance by presenting “We XYZ company wants you to live longer”, people will be emotionally moved by this message and might purchase it.
What causes the framing effect?
Here are the key causes of the framing effect:
- Method of presentation
- Cognitive shortcuts
- Emotional clouding
Essential Tips to Avoid Framing Effect
The framing effect can be avoided by following these tips:
Tip 1: Increase awareness
People can efficiently avoid the framing effect by increasing their awareness of it and other cognitive biases. When you thoroughly understand the framing effect, you can efficiently prevent this effect. It will help you enhance your critical thinking and rational decision-making.
Tip 2: Take some time to think twice
The framing effect compels people to make hasty decisions. You should take some time and thoroughly understand the situation to assess whether this is real or framed. Thinking twice will enable you to explore more options that could be more beneficial than the one presented.
Tip 3: Imagine different frames
When a particular piece of information is presented to you, you should imagine it in various frames. You will find out whether this frame benefits you or is just a “frame” to compel you to make a decision.
By doing this, you can efficiently understand what is right and what is wrong, what is hidden and what is revealed.
Tip 4: Gather feedback
People should gather necessary feedback from multiple sources related to the information presented. It is essential to understand others’ perspectives and experiences. In this way, you can develop a deep understanding of the framing effect and then successfully avoid it.
What are the tips to avoid the framing effect?
- Increase awareness
- Take some time to think twice
- Imagine different frames
- Gather feedback
Examples of Framing Effect
These examples about the framing effect will help you to develop a better understanding of this concept:
Example 1: Framing Effect in Politics
Politicians often use framing effects in their political campaigns to generate a significant lead. They elaborate on an issue by highlighting the advantages of their policies and by negatively altering the image of their opponents.
Through the framing effect, politicians shape public perception and influence voting decisions.
Example 2: Framing Effect in Healthcare
Imagine a pharmaceutical company making a vaccine to eradicate a specific virus. They can assess and influence the perspective of people by presenting them with two options:
- The vaccine is effective for 70% of people
- The Vaccine is not effective for 30% of people
People will always prefer gains over losses. They are more likely to choose the first option, which has 70% effectiveness.
Example 3: Framing Effect in Marketing
Imagine an ABC snacks company offers its customers to choose between these options:
- The product is 80% fat-free
- The product has 20% fat
Now, both options are the same. However, people will be more likely to choose an 80% fat-free product because it seems less risky.
Frequently Asked Questions
In psychology, the framing effect is the tendency of people to make decisions based on the way information is presented to them.
In framing effect, it doesn’t matter to the people what is presented to them. Actually, they focus more on how it is being presented to them. This mind-turning presentation causes an error in evaluating the situation thoroughly. This is how the framing effect influences decision-making.
By properly understanding the concept of the framing effect, anyone can efficiently avoid the framing effect. However, there are certain tips to avoid the framing effect:
- Increasing your awareness
- Considering different frames
- Thinking Twice
Selecting framing of results can cause research bias, biased interpretation, exaggeration of findings, and mislead readers if not reported transparently.
You can protect yourself from the framing effect by reframing information, analysing absolute values, slowing decisions, and seeking multiple viewpoints.
