Framing Effect in Psychology and Economics
Amos Tversky and Daniel Kahneman have shown that framing can affect the outcome (ie. the choices one makes) of choice problems, to the extent that several of the classic axioms of rational choice do not hold. This led to the development of prospect theory as an alternative to rational choice theory.
The context or framing of problems adopted by decision-makers results in part from extrinsic manipulation of the decision-options offered, as well as from forces intrinsic to decision-makers, e.g., their norms, habits, and unique temperament.
Read more about this topic: Framing (social Sciences)
Famous quotes containing the words framing, effect, psychology and/or economics:
“In framing a government which is to be administered by men over men ... you must first enable the government to control the governed; and in the next place oblige it to control itself.”
—James Madison (1751–1836)
“The pleasure of one’s effect on other people still exists in age—what’s called making a hit. But the hit is much rarer and made of different stuff.”
—Enid Bagnold (1889–1981)
“Psychology has nothing to say about what women are really like, what they need and what they want, essentially because psychology does not know.... this failure is not limited to women; rather, the kind of psychology that has addressed itself to how people act and who they are has failed to understand in the first place why people act the way they do, and certainly failed to understand what might make them act differently.”
—Naomi Weisstein, U.S. psychologist, feminist, and author. Psychology Constructs the Female (1969)
“There is no such thing as a free lunch.”
—Anonymous.
An axiom from economics popular in the 1960s, the words have no known source, though have been dated to the 1840s, when they were used in saloons where snacks were offered to customers. Ascribed to an Italian immigrant outside Grand Central Station, New York, in Alistair Cooke’s America (epilogue, 1973)