The framing effect refers to the phenomenon in which people's decisions and preferences can be influenced by how a problem or choice is framed or presented to them.
For example, if a person is given two options, one framed as a gain (e.g., "You have a chance to win $100") and one framed as a loss (e.g., "You have a chance to lose $100"), they may choose differently depending on the frame.
Another example is in medicine. A doctor presents two options for a medical treatment to a patient. One option is framed as "90% chance of survival" and the other as "10% chance of death." Even though the options are mathematically equivalent, the way they are framed can influence the patient's decision.
Another is a menu that presents two options for a main course, one is labeled as a "healthy salad" and the other as a "tasty burger." Even though both options may have the same calorie content, the way they are framed can influence the customer's decision.
Framing effects are rife in investment options. For example, an investment advisor presents two options for a financial investment, one as a "conservative option" and the other as a "high-risk option." The way the options are framed can influence the investor's decision, even though the expected returns and risks may be the same for both options.
Here are some ways to protect yourself from the framing effect: