Framing Effects

Question 1

Framing effect (psychology)

Answer 1

The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. as a loss or as a gain.

People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented. Gain and loss are defined in the scenario as descriptions of outcomes (e.g., lives lost or saved, disease patients treated and not treated, etc.).

Question 2

Contrast effect

Answer 2

The enhancement or reduction of a certain stimulus’ perception when compared with a recently observed, contrasting object.

Question 3

Decoy effect

Answer 3

Preferences for either option A or B change in favor of option B when option C is presented, which is completely dominated by option B (inferior in all respects) and partially dominated by option A.

Question 4

Default effect

Answer 4

When given a choice between several options, the tendency to favor the default one.

Question 5

Denomination effect

Answer 5

The tendency to spend more money when it is denominated in small amounts (e.g., coins) rather than large amounts (e.g., bills).

Question 6

Distinction bias

Answer 6

The tendency to view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately.

Question 7

Framing effect

Answer 7

Drawing different conclusions from the same information, depending on how that information is presented.