Framing Effect:

Framing Effect:

The Framing Effect is a type of cognitive bias where the way information is presented (the “frame”) significantly influences decision-making and judgment.

Definition:

People react differently to the same information depending on how it is framed — either positively (gain frame) or negatively (loss frame).

 Classic Example:

Imagine this medical scenario:

• Option A: “200 people will be saved.”
• Option B: “There is a one-third chance that all 600 people will be saved, and a two-thirds chance that no one will be saved.”

Now reframe it negatively:

• Option A: “400 people will die.”
• Option B: “There is a one-third chance that no one will die, and a two-thirds chance that all 600 will die.”

Though the outcomes are logically identical, people tend to choose:

• Option A in the positive frame (to avoid loss),
• Option B in the negative frame (to take risks to avoid sure loss).

Why It Happens:

• Influenced by emotions, not just logic.
• We’re more sensitive to losses than gains (related to loss aversion in Prospect Theory).

In Psychology and Real Life:

• Advertising: “95% fat-free” sounds better than “5% fat.”
• Medicine: “Survival rate is 90%” sounds more reassuring than “10% die.”
• Politics: “Tax relief” vs. “tax cut for the rich.”

How to Overcome It:

• Reframe the situation yourself to see both gain and loss perspectives.
• Slow down decision-making, especially when stakes are high.
• Focus on facts and long-term outcomes, not just immediate impressions.

Shervan K Shahhian