The Framing Effect

Method

 

Suppose there is an epidemic of a terrible disease and if no action is taken, it is certain that 600 people will die. But there are two courses of action that could be used to alleviate the death toll.

 

Condition 1 – (Positive Frame) If Program A is adopted, it is certain that 200 people will be saved.

Condition 2 – (Negative Frame) If Program A is adopted, it is certain that 400 people will die.

 

If Program B is adopted, there is a 1/3 chance that all 600 will be saved, but a 2/3 chance that all 600 will die.

 

If you were forced to choose, which program would you adopt? (Choosing program A is being risk averse. Choosing program B is being risk seeking)

Results

 

 

CROSS TABULATION OF RISK BY FRAME

 

                FRAME

   RISK  Positive  Negative

        +---------+---------+

Averse  |       7 |       3 |    10

  COL % |   63.6% |   25.0% | 43.5%

        +---------+---------+

Seeking |       4 |       9 |    13

        |   36.4% |   75.0% | 56.5%

        +---------+---------+

               11        12      23

             100%      100%    100%

 

 

 

         TWO BY TWO TABLES

 

    +----------+----------+

    |          |          |

    |     7    |     3    |    10

    |          |          |

    +----------+----------+

    |          |          |

    |     4    |     9    |    13

    |          |          |

    +----------+----------+

         11         12         23

 

       FISHER EXACT TESTS:

 

        P LOWER TAIL = 0.0736

        P UPPER TAIL = 0.0260

        P TWO TAILED = 0.0995

 

 

Conclusions

 

People often tend to avoid risk. That is, they prefer a course of action in which the outcome is certain, even when the outcome of another course of action is equivalent, according to a normative model of decision making, but it involves uncertainty.

However, this may occur because the less risky course of action is usually framed in terms of whatever is positive about the outcome. If the very same outcome is framed in terms of the negative side of the outcome, even though the outcome is really no different, people tend to avoid it in favor of the riskier course of action.