Framing, Behavioral Economics
The Framing Effect
The Framing Effect is a Framing and Behavioral Economics scenario. The core lesson: How a choice is described changes what people choose, even when the options are identical. A disease is expected to kill 600 people. Two programs are proposed. DecisionPlay maps the players, payoffs, and equilibrium dynamics that shape how this situation typically resolves.
The situation
A disease is expected to kill 600 people. Two programs are proposed. Program A: 200 people will be saved for certain. Program B: a 1/3 chance all 600 are saved, 2/3 chance nobody is saved. Which do you choose?
Background
Tversky and Kahneman's 1981 framing experiment is one of the most replicated findings in behavioral economics. When the same choice is framed as 'lives saved,' most people prefer the certain option. When reframed as 'lives lost,' most people prefer the gamble. The options are mathematically identical. Only the words change. Goerg, Rand, and Walkowitz (2020) found this framing effect is strong in strategic games like the prisoner's dilemma but vanishes in non-strategic settings, suggesting framing works partly by changing how we model the other player, not just how we feel about ourselves.
What this reveals
The frame is the choice
How a decision is described changes what people choose, even when the underlying options are mathematically identical. This is among the most robust findings in behavioral science, replicated hundreds of times across cultures, contexts, and stakes. The frame itself is a strategic tool. Whoever frames the choice shapes the outcome.
How to counter it: For every important decision, describe it in both gain and loss terms. If your preference flips, you're being driven by the frame, not by your values. The real choice is the one that survives both frames.
A question to sit with
Think of a recent important decision. How was it framed to you? What would you have chosen if it had been framed the opposite way?
Frequently asked questions
- What game theory concept does The Framing Effect illustrate?
- The Framing Effect illustrates Framing, Behavioral Economics. How a choice is described changes what people choose, even when the options are identical.
- What is the situation in The Framing Effect?
- A disease is expected to kill 600 people. Two programs are proposed. Program A: 200 people will be saved for certain.
- What does The Framing Effect reveal about how people decide?
- The frame is the choice. How a decision is described changes what people choose, even when the underlying options are mathematically identical. This is among the most robust findings in behavioral science, replicated hundreds of times across cultures, contexts, and stakes. The frame itself is a strategic tool. Whoever frames the choice shapes the outcome.
- How do you avoid the trap in The Framing Effect?
- For every important decision, describe it in both gain and loss terms. If your preference flips, you're being driven by the frame, not by your values. The real choice is the one that survives both frames.
- What is the research behind The Framing Effect?
- Tversky and Kahneman's 1981 framing experiment is one of the most replicated findings in behavioral economics. When the same choice is framed as 'lives saved,' most people prefer the certain option. When reframed as 'lives lost,' most people prefer the gamble.
- How long does The Framing Effect take to play?
- About 7 min, at intro difficulty, across 4 decision points. It runs in your browser with no account and no sign-in.
Keep exploring
More Personal Decisions scenarios, or browse all scenarios. New to this? Start with how DecisionPlay works or the game theory glossary.
Topics: framing, loss-aversion, kahneman-tversky, behavioral