Framing Effect

Overview

The framing effect: logically equivalent descriptions of the same decision produce different choices depending on whether outcomes are cast as gains or losses. Frame determines whether the brain enters gain-mode or loss-mode; the choice follows from the mode.

Three types: risky-choice (gain vs. loss on probabilities), attribute ("95% fat free" vs. "5% fat"), goal ("do X to gain Y" vs. "skip X, lose Y"). Real frames often compound all three.

Corrective: force both framings. If the decision is stable across frames, the frame is not driving it. If it flips, inspect why.

Composes with loss-aversion-prospect-theory, anchoring, pricing-strategy, signaling-games, critical-thinking.

When to Use