What is the FRAME EFFECT in psychology

Framing, or framework effect, is one of the most common behavioral errors among savers. According to this effect, the decisions made by individuals differ according to the way in which identical questions are "framed".

In fact, in many cases, the available alternatives can be formulated in a way that highlights positive or negative aspects of the same problem, which leads to changing our reactions. Let us discover, through this Psychology-Online article, what is the frame effect in psychology and how it can influence the decisions we make in everyday life. In addition, we also show you examples of this effect so you can identify it.

Index

1. What is the frame effect in psychology
2. Frame Effect Types
3. How the frame effect affects decision making
4. Examples of the frame effect in marketing and economics

The framing effect is called the framing dependency. In fact, the term fragging means framed and refers to a

Amos Tversky and Daniel Kahneman elaborated this definition in 1979 within their prospect theory. They explained that "positive" and "negative framing" lead to very different results.

Specifically, the frame effect bias occurs when, by modifying the conceptual structure of a decision problem, changes occur in the choices of individuals. In short, by changing the order of the factors, the product will change, whereas, according to the principles of rationality, it should not change at all.

Three different types of framing effect based on different cognitive processes have recently been identified. We see them below:

• Attribute framing: A level of sleepiness associated with a moderate risk of making driving errors can be described as greater than the optimal conditions of absence of risk or as less than the worst conditions of risk high. Studies of this type of framing indicate that more negative evaluations are obtained when the object of evaluation is linked to a low level of risk with respect to which the losses.
• Objective framing: to try to convince a population to behave in order to reduce the level of drowsiness at the wheel, it is possible to emphasize the positive consequences of enacting a certain behavior or the negative consequences of not implementing that behavior behavior.
• Decision framing: the choice between two different ways to lower the level of sleepiness, of equal expected value, but one of the consequences uncertain and the other of certain consequences, is affected by how the consequences of the two are described. options. For example, like the success rate or failure to achieve certain goals.

When it comes to understanding how the framing effect affects decision making It is best to look at a practical case like the following:

• We have to do a very complex operation at work. There's a 10% chance it will go wrong and we'll get fired. In this sentence we notice that there is more risk of losing.
• We have to do a very complex operation at work. There is a 90% chance that everything will work out. This phrase conveys security that everything will be fine, leaving aside the 10% difference

So what does the frame effect bias mean? Basically, that the change in the probability of the framed information does not change the volume of exchanges, only the perception. In general, they will cope with the complex operation at work if it is proposed in the second way, but if it is exposed as in the first option, they will hardly do it.

Therefore, to influence the decisions of others, it is essential to give a positive perspective, in addition to taking into account the tone with which we communicate the task.

The ingenious experiments carried out by Kahneman and Tversky, with the participation of volunteers, showed that, in general, individual decision-making does not satisfy the hypotheses of rationality of the agents economic. According to the framework effect, an agent changes his decision when faced with the same choice problem if it is presented in different ways.

Example #1 of the frame effect

These experimental results have paved the way for research under the name of behavioral economics, including alternative models to the rationality of agents.

Experiments in economics tend to emphasize the generality of a situation and the role of monetary incentives. In them, the psychological approach, which underlies the framing effect, highlights the role of intrinsic individual motivations and mental processes in a particular decision-making situation. Let's look at the following choice problem proposed by Kahneman and Tversky to understand it better:

• Option 1: Buy a stereo for $125 and a calculator for $15 at a certain store, or go to a store further away where the calculator is offered at a $5 discount.
• Option 2: Buy a stereo for $125 and a calculator for $15 at a certain store, or go to a store further away where the stereo is offered at a $5 discount.

The problem is equivalent because the total saving is the same. However, laboratory results showed that the proportion of people who choose to go to the second store is significantly higher in the first case, where the discount is applied to the asset with the lowest price. Therefore, it looks cheaper in relative terms. This simple result violates the hypothesis of transitivity of preferences of a rational agent.

Example #2 of the frame effect

The two scholars present many other examples of the framing effect in the event that individuals must make decisions under conditions of uncertainty. Let's see an example of this: there are two alternative treatments for a deadly disease that affected 600 people and this problem can be approached in two ways:

• Approach 1: The first treatment saves the lives of 200 people and the second treatment saves all with a probability of 33%, or none with the remaining probability of 66%.
• Approach 2: with the first treatment 400 people die and with the second treatment there is a 33% probability that no one dies and a 66% probability that everyone dies.

In this case, the two formulations of the same problem produced opposite results. On the one hand, the vast majority of participants chose the first option when faced with the first approach and vice versa in the second.

Based on these results, Kahneman and Tversky proposed the so-called prospect theory, according to which individualsthey value the possibility of gains or losses differently, that is, they tend to avoid risk in the face of a positive event and, on the contrary, seek it out in the face of a negative one. If you want to analyze other situations, we suggest you consult this article on the types of decisions: characteristics and examples.

This article is merely informative, in Psychology-Online we do not have the power to make a diagnosis or recommend a treatment. We invite you to go to a psychologist to treat your particular case.

If you want to read more articles similar to What is the frame effect in psychology and examples, we recommend that you enter our category of cognitive psychology.

• Ordine degli Psicologi del Lazio (2005). road psychology. Gli interventi dello psychologist per ottimizzare il system uomo-veicolo-strada. Milan: Franco Angeli.
• Villa, E. (2016). Cos’è il framing e perché influence our investment decisions. Recovered from: https://www.risparmiamocelo.it/cose-il-framing-e-perche-influenza-le-nostre-decisioni-di-investimento/