Framing Effect: Definition & Examples

What is the Framing Effect?

The framing effect is a cognitive bias that distorts our decisions and judgments based on how information is presented or ‘framed.’ This effect isn’t about lying or twisting the truth. It’s about the same cold, hard facts making us think and act differently just by changing their packaging.

Photograph of frames to illustrate the idea of the framing effect. — Things look nicer inside these frames!

Framing is all about the way we present options. Are they shown as a win (positive frame) or a loss (negative frame)? We’re naturally inclined to go for options that look like gains, even if a ‘loss’ option leads to the same outcome.

Ever noticed how the same facts presented differently can lead to entirely different decisions? Welcome to the fascinating world of the framing effect.

Think about it. Would you opt for surgery if the surgeon says it has a 90% survival rate? Probably yes. But would you feel the same if they said it has a 10% mortality rate? Suddenly, it sounds riskier, right? Statistically, these are the same outcomes, but they feel different. That’s the framing effect in action!

Learn more about Cognitive Biases.

Examples of The Framing Effect: Spot It in Your Daily Life

The following are examples of the framing effect that you’ve probably seen:

Marketing Tactics: Notice how advertisements say “Save 25%” instead of “Spend 75%.” This positive framing makes the deal seem more attractive.
Food Choices: A label saying “99% fat-free” is more appealing than one stating “contains 1% fat,” even though they mean the same thing.
Job Offers: An offer letter stating “10 vacation days” sounds less appealing than one mentioning “2 weeks of vacation,” even though both are the same.
Political Campaigns: Politicians often use framing to their advantage. For instance, a policy might be presented as “protecting national security” instead of “increasing surveillance,” even though both statements refer to the same action. The first frame appeals to our desire for safety, while the second highlights potential privacy concerns.

Why the Framing Effect Occurs

Daniel Kahneman and Amos Tversky, two pioneering psychologists, identified the framing effect while laying the groundwork for what we now know as prospect theory.

Prospect theory is a psychological model that describes how people make decisions when faced with risk. It fundamentally challenges the traditional economic idea that humans are rational actors who always make decisions in their best interest. Instead, Kahneman and Tversky found that people often make irrational decisions influenced by how choices are framed.

A key component of prospect theory is the idea of loss aversion – we hate losing more than we enjoy winning. In fact, studies suggest that the pain of losing is psychologically about twice as powerful as the pleasure of gaining. So, when choices are framed as potential losses, we tend to take more risks to avoid those losses. Conversely, we tend to be more conservative when the same options are stated as potential gains.

Take the surgery example we discussed earlier. The statement “90% chance of survival” is framed as a gain, which makes us prefer the safer, more conservative option. On the other hand, a “10% chance of death” is a potential loss, making us more likely to avoid the risk associated with it.

Another reason the framing effect occurs is our reliance on mental shortcuts or heuristics. Our brains are wired to take these shortcuts to save time and cognitive effort. But these shortcuts can also lead us astray, especially when the framing of information nudges us toward a particular choice.

Minimizing It in Your Life

The framing effect, deeply intertwined with prospect theory, is a potent force that can sway our decision-making process. It’s a reminder that our decisions are not always as objective or rational as we might like to think. Awareness of this cognitive bias can help us make more informed and balanced decisions in our daily lives.

Here are a few strategies to help dodge the framing effect in our everyday lives:

Awareness is Key: Knowing about the framing effect is a great first step. When you’re aware, you can notice how the framing of information influences your decisions.
Reframe the Information: When faced with a decision, try reframing the information differently. If a situation is framed positively, think about how it would look if stated negatively, and vice versa. This process can help you see the choice more objectively.
Seek More Information: Don’t rely solely on how information is presented. Dig deeper and gather more data. The more information you have, the less likely you’ll be swayed by how it’s framed.
Take Your Time: Impulsive decisions are often where cognitive biases sneak in. If you can, take your time to make decisions. Slowing down allows you to consider the information more carefully and reduces the influence of the framing effect.

By applying these strategies, we can reduce the power of the framing effect and make decisions that align with our true preferences and values.