Why Do We Fall For The Framing Effect?

Summary

This script explores the 'framing effect,' a psychological phenomenon where decisions are influenced by how options are presented. It discusses how people perceive a product differently based on its context. The script delves into neurological research by Martino et al., who used fMRI to show that the amygdala, linked to emotions, plays a role in decision-making. The study found that people are more likely to gamble when choices are framed as losses, revealing our aversion to losing outweighs our desire for gains, and emotions can irrationally sway our decisions.

Takeaways

• 🧠 Framing Effect: The way options are presented can significantly influence our decisions, even if the options are essentially the same.
• 💭 Perception Shift: We perceive the same situation differently based on how it's framed, such as seeing a toothpaste as better if 'four out of five dentists recommend it' versus 'one out of five dentists does not recommend it'.
• 💸 Price Comparison: The perception of a product's value changes depending on what other options are available, affecting whether it seems expensive or a good deal.
• 🔍 Research Evolution: The framing effect was first coined in the 70s by Furski and Kahneman, and later, in 2006, Martino and colleagues used fMRI to study brain activity during decision-making under different framings.
• 🧬 Brain Activity: The amygdala, known for emotional responses, is activated differently depending on how a decision is framed, suggesting emotions play a key role in decision-making.
• 🔁 Risk Aversion: People are more likely to choose the safe option when framed as a gain but are more likely to gamble when framed as a loss.
• 💰 Loss Aversion: The study showed that people dislike losing more than they like gaining, which is reflected in their decisions when the framing changes.
• 🎯 Emotional Influence: The amygdala's activation pattern indicates that emotions can lead to irrational decision-making, even when outcomes are the same.
• 🤔 Cognitive Bias: The framing effect is a cognitive bias that can override rational thinking, showing the complex interplay between cognition and emotion.
• 💡 Awareness is Key: Being aware of the framing effect can help us make more rational decisions by recognizing when our emotions are influencing our choices.

Q & A

What is the framing effect?

The framing effect is a psychological phenomenon where people react to a particular choice in different ways depending on how the information is presented or framed.

Who coined the term 'framing effect'?

The term 'framing effect' was coined by Furski and Kahneman in the 1970s.

How does the framing effect influence our decisions?

The framing effect influences our decisions by making us perceive the same information differently based on how it is presented, which can lead to irrational choices.

What role does the amygdala play in decision-making?

The amygdala, an almond-shaped structure in the brain, plays a role in emotional responses and is activated during decision-making, suggesting that emotions can influence our decisions irrationally.

How did Martino and colleagues study the framing effect?

Martino and colleagues studied the framing effect by conducting an experiment where they presented participants with different scenarios and observed their brain activity using fMRI.

What was the experiment conducted by Martino and colleagues about?

The experiment was about observing how people's choices change when presented with the same scenario framed differently, either as a potential gain or a potential loss.

What did the participants in the study tend to do in the first scenario?

In the first scenario, where the choice was framed as a potential gain, participants were more likely to choose the safe bet.

How did the participants' choices differ in the second scenario?

In the second scenario, where the choice was framed as a potential loss, participants were more likely to gamble, indicating a change in decision-making due to the framing of the scenario.

How much more did participants gamble in the second scenario compared to the first?

Participants gambled almost 19 more times out of 100 when the choice was framed as a loss.

What does the activation of the amygdala during decision-making suggest about the framing effect?

The activation of the amygdala during decision-making suggests that the framing effect might be driven by an underlying emotional system, as the amygdala is associated with emotional responses.

How can we avoid falling for the framing effect?

To avoid falling for the framing effect, we can remind ourselves to consider choices objectively, looking at the actual outcomes rather than how they are presented.