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.

Outlines

00:00

🧠 The Framing Effect

The paragraph discusses the concept of the framing effect, which was coined by Furski and Kahneman in the 70s. It explains how the way options are presented can influence our decisions, even when the underlying information is the same. For instance, the perception of a toothpaste's quality changes based on how it's framed against other products. The paragraph also introduces how the framing effect can impact our rationality and sets the stage for further exploration of its neurological basis.

🧬 Neurological Insights into Framing

This section delves into the neurological aspects of the framing effect. It describes an experiment conducted by Martino and colleagues in 2006, where they used fMRI to scan participants' brains while they made decisions under different frames of potential gains and losses. The study showed that the framing of the decision scenario significantly influenced participants' choices, with most opting for the safe bet when framed as a gain and gambling when framed as a loss. This suggests that the brain processes gains and losses differently, which is a key aspect of the framing effect.

💰 Loss Aversion and Decision Making

The paragraph explores the emotional aspect of decision making, particularly the aversion to losses. It explains that people are more sensitive to losses than they are attracted to gains, which is a significant factor in the framing effect. The study mentioned found that the amygdala, a part of the brain associated with emotional responses, was activated differently depending on how the decision was framed. This indicates that emotions play a crucial role in the irrational switching of decisions, even when the outcomes are the same.

🌟 Overcoming the Framing Effect

The final paragraph offers a positive outlook on the framing effect, suggesting that while our brains and emotions might be susceptible to it, we can still strive to maintain a balanced perspective. It encourages individuals to be aware of the framing effect and to remind themselves not to fall into its trap, thus advocating for a more rational approach to decision making despite the influence of emotional and cognitive biases.

Keywords

💡Framing Effect

The framing effect refers to the cognitive bias where people react to a particular choice in different ways depending on how it is presented. In the video, this is illustrated by the toothpaste example, where the same information is presented positively ('four out of five dentists recommend') or negatively ('one in five dentists does not recommend'), leading to different perceptions of the product.

💡Rationality

Rationality in decision-making implies that decisions are based on logic and reason. The video discusses how the framing effect can affect rationality by showing that despite the same underlying probabilities, the way information is framed can lead to irrational decisions, as seen in the gambling scenario.

💡Loss Aversion

Loss aversion is the psychological phenomenon where people prefer avoiding losses to acquiring equivalent gains. The video highlights this by showing that participants are more likely to gamble when the choice is framed as a potential loss rather than a potential gain, indicating a stronger emotional response to losses.

💡Amygdala

The amygdala is an almond-shaped part of the brain known for its role in processing emotions, particularly fear. The video explains that the amygdala is activated in situations where the framing effect leads to different decision-making, suggesting that emotions play a significant role in the framing effect.

💡Emotional Responses

Emotional responses are the feelings and reactions that people have to different stimuli. The video suggests that emotional responses, such as the fear of loss, can override rational decision-making processes, as indicated by the amygdala's activation during decisions influenced by the framing effect.

💡Decision-making

Decision-making is the cognitive process of selecting a course of action from multiple options. The video explores how the framing of choices can significantly impact this process, leading to different decisions based on emotional responses rather than logical analysis.

💡Furski and Kahneman

Furski and Kahneman are referenced in the video as the researchers who first coined the term 'framing effect' in the 1970s. Their work laid the foundation for understanding how the presentation of information can influence decision-making.

💡fMRI

Functional Magnetic Resonance Imaging (fMRI) is a neuroimaging technique used to measure brain activity. In the video, fMRI is used by Martino and colleagues to study the neural correlates of the framing effect, revealing the activation of the amygdala in response to different framing scenarios.

💡Safe Bet

A safe bet refers to a decision that minimizes risk. The video contrasts the choice of a safe bet with the choice to gamble, showing how the framing of a scenario as a potential loss can lead people to take more risks, which is contrary to the typical preference for safety.

💡Gamble

Gambling, in the context of the video, refers to the choice to take a risk with an uncertain outcome. The study mentioned in the video found that participants were more likely to gamble when the scenario was framed as a loss, demonstrating the impact of framing on risk-taking behavior.

💡Cognitive Bias

Cognitive bias is a pattern of deviation in judgment that occurs in particular situations. The framing effect is an example of cognitive bias, as it shows how people's judgments can be skewed by the way information is presented, rather than the information itself.

Highlights

Daily decisions are influenced by how options are framed.

Framing effect makes the same information seem better or worse.

People perceive products differently based on their placement among other options.

The framing effect was coined by Furski and Kahneman in the 70s.

The framing effect impacts rational decision-making.

Martino and colleagues conducted an fMRI study on the framing effect in 2006.

The study involved choices between a sure gain and a gamble.

Participants were more likely to gamble when the choice was framed as a loss.

The amygdala was found to be activated during the decision-making process.

The amygdala is associated with emotional responses and fear.

Emotions play a significant role in switching decisions irrationally.

The same brain response occurs for opposite decisions with the same outcome.

The framing effect may be driven by an underlying emotional system.

Despite the framing effect, we can still maintain a positive perspective.

Being aware of the framing effect can help avoid falling for it.

Transcripts

[Music]

every day

our options might be framed to make a

single decision

seem better or worse these two

toothpastes

cost the same but we'll think a

toothpaste is better

if four out of five then disrecommend

them that's almost all the dentists

so pretty good right what if the label

on this one said

one in five dentists does not recommend

well now it's a bit concerning

these two statements actually mean the

same thing so

why do we feel differently about them

it turns out we're pretty vulnerable to

the way options are shown to us

if a product is next to a bunch of

cheaper items

you might think it's too expensive but

if it's the cheapest product

it might look like a great deal

this is because the way our choices are

framed has the power to influence our

decisions

in the 70s furski and kahneman coined

the term the framing effect

which means that our brain makes

decisions based on how information is

shown to us

this can be so powerful that it affects

our rationality

while the framing effect became very

well known there still wasn't much

research about what was going on in the

brain

during these types of decisions the

martino and colleagues

took this concept a step further in 2006

by setting the framing effect

while scanning the brain with fmri and

their experiment went like this

say you receive 50 pounds

now you have the option to keep 20 for

sure or gamble to keep or lose all of

the money

think about what you would choose in the

next scenario

you receive 50 pounds again but now

you have the option to lose 30 for sure

or gamble to keep or lose all the money

what do you choose this time these two

scenarios are actually the same

the only difference is how the question

is framed

did your answer change between scenarios

if it did

you're not the only one participants in

this study were more likely to choose

the safe bet

in the first option but more likely to

gamble in the second

so much that they gambled almost 19 more

of the time

when the choice was framed as a loss

[Music]

why is this it seems that we feel losses

much differently than newfield gains

not only that but we dislike losing a

lot more than we even like

but what's happening in the brain it

turns out

that one part of the brain activated

during this switched behavior

and this was the amygdala

they found that it was activated when

choosing the safe bet in the first

option

but it was also activated when taking a

risk in the second

this almond-shaped structure in the

brain has been well known for emotional

responses

experiences and is mainly known for the

fear response

but how does this relate to decisions

this suggested that emotion plays an

important role

in switching our decisions irrationally

we have the same brain response to

opposite decisions

even when the choices have the same

outcome so it's possible

that the framing effect is driven by an

underlying emotional system

while our brains and emotions may have

something to do with how we fall for the

framing effect

we can still look at the glass half full

versus empty

and keep reminding ourselves not to fall

for the framing