The Effects of Framing, Problem Variations, and Providing Rationale on Choice

Abstract

Tversky and Kahneman reported a large effect of the framing of decision options on choice. When options were phrased positively in terms of gains, people chose the sure thing. But when options were phrased negatively in terms of losses, people chose the risky option. However, not all researchers have replicated this finding, especially when using different decision problems and task requirements. Consequently, problem and/or task variables may be important. The current study investigated two problem variables: degree of apparent gain/loss in the risky option (e.g., partial vs. total) and probability of success in the risky option. The effect of requesting a rationale on the framing effect was also studied. Although framing significantly affected choice, its effects were mediated or moderated by rationale request, degree of apparent gain/loss, and probability, sometimes in complex ways. The findings suggest that framing is less pervasive than previously believed.