Framing effects can lead to different choices from "summary" of Advances in Behavioral Finance by Richard H. Thaler
One of the key insights from behavioral finance is the recognition that the way information is presented can have a significant impact on decision-making. This phenomenon, known as framing effects, refers to the idea that individuals may make different choices depending on how a problem or decision is framed. For example, consider a scenario where individuals are presented with two options: one that emphasizes potential gains and another that emphasizes potential losses. Research has shown that individuals are more likely to choose the option framed in terms of gains, even if the outcomes are objectively the same. This demonstrates how the framing of information can sway decisions in one direction or an...
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