Framing effects can alter decision outcomes from "summary" of Judgment in Managerial Decision Making by Max H. Bazerman,Don A. Moore
Framing effects refer to the way in which choices are presented to individuals. The framing of a decision can significantly influence the outcome, even when the choices being presented are objectively the same. This is because individuals tend to rely on mental shortcuts, or heuristics, when making decisions. These heuristics can lead to biases in judgement and decision-making.
When a decision is framed in a positive light, individuals are more likely to take risks. On the other hand, when the same decision is framed in a negative light, individuals tend to be more risk-averse. This demonstrates that the way a decision is framed can alter the perceived risks and benefits associated with that decision.
One classic example of framing effects is the "Asian disease" study by Tversky and Kahneman. In this...
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