The Framing Effect: How Context Shapes Decision-Making and Perception

Introduction

The framing effect is a cognitive bias that influences individuals’ decisions based on how information is presented rather than the information itself. This report will explore the mechanisms of the framing effect, the psychological principles underlying it, and its implications for decision-making in various contexts, including marketing, politics, and healthcare. Understanding the framing effect is crucial as it reveals how context can shape perceptions and lead to different outcomes, even when the underlying facts remain constant. Through an examination of empirical studies and theoretical perspectives, this report aims to elucidate the ways in which framing can impact decision-making processes and perceptions in both individual and collective contexts.

The Framing Effect and Its Mechanisms

At its core, the framing effect occurs when the way information is presented influences an individual’s choice or judgment. Tversky and Kahneman (1981) first demonstrated this phenomenon in their seminal work on decision-maki