December 10: Framing effect (Behavioral Economics)
The psychological idea that we process the same piece of information differently depending on how it is framed.
Source: The Decision Lab
Published: January 2020
Behavioral Economics: Framing effect
What is it?
The framing effect is the psychological idea that we process the same piece of information differently depending on how it is framed.
What are examples?
2 out of every 100 patients die as a result of the surgery
the service costs $730 a year
20% fat ground beef
the surgery has a 98% survival rate
you’ll only pay $2 a day for the service
80% lean ground beef
How can we make better decisions?
Framing is a tool of persuasion. Try to reframe a convincing claim in a new way to see if it becomes less compelling if phrased differently. If you want to avoid framing, then explain the rationale behind your decisions, even if you’re only explaining them to yourself.
Did you appreciate the fact today?