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 reason why women effect so little and are so shallow is because their aims are low, marriage is the prize for which they strive; if foiled in that they rarely rise above disappointment ... [ellipsis in source]”
—Sarah M. Grimke (1792–1873)
“A writer must always try to have a philosophy and he should also have a psychology and a philology and many other things. Without a philosophy and a psychology and all these various other things he is not really worthy of being called a writer. I agree with Kant and Schopenhauer and Plato and Spinoza and that is quite enough to be called a philosophy. But then of course a philosophy is not the same thing as a style.”
—Gertrude Stein (1874–1946)
“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)