How THE FRAMING EFFECT influences YOUR DECISION MAKING - (Psychology mental model)
By Alfie Marsh on youtube.com
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The framing effect explains how the same information can be presented in different ways to evoke different emotional responses. This can drastically impact decision-making ability. Daniel Kahneman, a psychologist and Nobel Prize winner, found that losses are perceived more significantly than gains and that a surefire gain is preferred to a probable one. He also found that reframing the reference point can change the perception of something, such as comparing a $5 Starbucks coffee to renting an office space for $100 a day. Lastly, frame inversion shifts the perspective of a piece of information by flipping it on its head.
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