Choices, Values, and Frames

  title={Choices, Values, and Frames},
  author={Daniel Kahneman and Amos Tversky},
We discuss the cognitive and the psy- chophysical determinants of choice in risky and risk- less contexts. The psychophysics of value induce risk aversion in the domain of gains and risk seeking in the domain of losses. The psychophysics of chance induce overweighting of sure things and of improbable events, relative to events of moderate probability. De- cision problems can be described or framed in multiple ways that give rise to different preferences, contrary to the invariance criterion of… Expand

Figures from this paper

Emotion and the Framing of Risky Choice
One of the most noted phenomena in social and political decision-making is the occurrence of a framing effect. For example, on problems involving risky choices, individuals tend to act risk-averseExpand
Context, conflict, weights, and identities: some psychological aspects of decision making
Experimental psychology provides a drastically different picture of human abilities, motives, and behavior from that which predominates economic analyses. Individual preferences are normativelyExpand
Aversion to risk and guilt
Much research has shown that cognitive processes are largely guided by individuals' states of mind (Mancini & Gangemi, 2002a, in press; Smeets, de Jong, & Mayer, 2000). In this paper, we specificallyExpand
Money, Kisses, and Electric Shocks: On the Affective Psychology of Risk
It is suggested that the assumption of probability-outcome independence, adopted by both expected-utility and prospect theory, may hold across outcomes of different monetary values, but not different affective values. Expand
Information integration in perceptual and value-based decisions
It is concluded that choice arises from a deliberative process which gathers samples of decision-relevant information, weighs them according to their salience and subsequently accumulates them, and the direction of the weighting is controlled by the task framing. Expand
The Effects of Cover Stories,Framing,and Probability on Risk Preference in Investment Decision Making
When making choices,people are sensitive to the way in which the problem is presented.This sensitivity was well exemplified by the framing effect,initially described by Tversky and Kahneman(1981).InExpand
Responsibility, Guilt, and Decision under Risk
We hypothesize that individuals' choices (risk-seeking/risk-aversion) depend on moral values and, in particular, on how subjects evaluate themselves as guilty or as victims of a wrong rather than onExpand
EPS Prize Lecture: Decision by sampling: The role of the decision environment in risky choice
  • N. Stewart
  • Medicine, Psychology
  • Quarterly journal of experimental psychology
  • 2009
This work reviews the application of decision by sampling to risky decision making and shows how DbS interacts with the real-world distributions of gains, losses, and probabilities to produce the classical psychoeconomic functions. Expand
Using dynamic monitoring of choices to predict and understand risk preferences
It is shown that measuring mouse movements while participants are deciding between a risky gamble and a certain payout powerfully detects their conflict about the options, and that this conflict strongly predicts their risk preferences, demonstrating the unique utility of dynamic measures of choice. Expand
The neurodynamics of choice, value-based decisions and preference reversal
A theory of choice is paramount in all the domains of cognition requiring behav-ioural output, from perceptual choice in simple psychophysical tasks to motiva-tional value-based choice, oftenExpand


Response Mode, Framing and Information-processing Effects in Risk Assessment
The chapter on framing by Tversky and Kahneman (1982) demonstrates that normatively inconsequential changes in the formulation of choice problems significantly affect preferences. These effects areExpand
Translation of Gambles and Aspiration Level Effects in Risky Choice Behavior
Two recent models of risky decision making developed by Fishburn Fishbijrn, P. C. 1977. Mean-risk analysis with risk associated with below-target returns. Amer. Econ. Rev.67 116-126. and by KahnemanExpand
Bounded rationality, ambiguity, and the engineering of choice
conceptions of bounded rationality. Recently, behavioral studies of choice have examined the second guess, the way preferences are processed in choice behavior. These studies suggest possibleExpand
The framing of decisions and the psychology of choice.
The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framedExpand
An article of faith among students of value, choice, and attitude judgments is that people have reasonably well-defined opinions regarding the desirability of various events. Although these opinionsExpand
Predicting Frames
Kahneman and Tversky's (1979) "prospect theory" has demonstrated that the way in which a decision problem is formulated, or "framed," can have strong and predictable effects on the perceivedExpand
Risk Taking and Problem Context in the Domain of Losses: An Expected Utility Analysis
This paper presents an experimental investigation of risk taking in the domain of losses. The results are partly compatible with expected utility theory, assuming an inflection point in the utilityExpand
Toward a positive theory of consumer choice
The economic theory of the consumer is a combination of positive and normative theories. Since it is based on a rational maximizing model it describes how consumers should choose, but it is allegedExpand
The simulation heuristic
Our original treatment of the availability heuristic (Tversky & Kahneman, 1973, 11) discussed two classes of mental operations that “bring things to mind”: the retrieval of instances and theExpand
Theory of Games and Economic Behavior
THIS book is based on the theory that the economic man attempts to maximize his share of the world's goods and services in the same way that a participant in a game involving many players attempts toExpand