The framing of decisions and the psychology of choice.

@article{Tversky1981TheFO,
  title={The framing of decisions and the psychology of choice.},
  author={Amos Tversky and Daniel Kahneman},
  journal={Science},
  year={1981},
  volume={211 4481},
  pages={
          453-8
        }
}
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 framed in different ways. Reversals of preference are demonstrated in choices regarding monetary outcomes, both hypothetical and real, and in questions pertaining to the loss of human lives. The effects of frames on preferences are compared to the effects of perspectives on perceptual appearance. The… Expand

Topics from this paper

The Framing of Decisions and the Evaluation of Prospects
Publisher Summary The chapter presents a series of demonstrations in which seemingly inconsequential changes in the formulation of choice problems caused significant shifts of preference. TheExpand
Rational choice and the framing of decisions
Alternative descriptions of a decision problem often give rise to different preferences, contrary to the principle of invariance that underlines the rational theory of choice. Violations of thisExpand
The framing of decisions
In the Theory of Rational Decision Making the psychological aspects are set aside. This contribution seeks to point out the relevance of psychology into economic decisions. The essay treats theExpand
The Theory of Rational Choice, Its Shortcomings, and the Implications for Public Policy Decision Making
The theory of rational choice has become the predominant theory of human behavior in many of the social sciences. The theory holds, among other things, that individuals are rationalExpand
Award Addresses Choices , Values , and Frames
We discuss the cognitive and the psychophysical determinants of choice in risky and riskless contexts. The psychophysics of value induce risk aversion in the domain of gains and risk seeking in theExpand
Construction Of Preferences
Standard economic theory suggests that people's preferences are revealed by their behavior. However, behavioral economics states that often preferences are constructed mainly because of the limitedExpand
Alternatives in Framing and Decision Making
There is a wealth of experimental data showing that the way a problem is framed may have an effect on people's choices and decisions. Based on a semantic analysis of evaluative expressions likeExpand
Choices, Values, and Frames
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 inExpand
Prescriptive models of psychological effects on risk attitudes
This paper discusses models of a person's risk attitude toward financial changes when his preferences depend on psychological effects of the changes, for example, effects on how the person is judgedExpand
Award Addresses The Construction of Preference
One of the main themes that has emerged from behavioral decision research during the past 2 decades is the view that people's preferences are often constructed in the process of elicitation. ThisExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 60 REFERENCES
Economic Theory of Choice and the Preference Reversal Phenomenon
A body of data and theory has been developing within psychology which should be of interest to economists. Taken at face value the data are simply inconsistent with preference theory and haveExpand
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
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
Rational choice and the structure of the environment.
  • H. Simon
  • Mathematics, Medicine
  • Psychological review
  • 1956
TLDR
A comparative examination of the models of adaptive behavior employed in psychology and economics shows that in almost all respects the latter postulate a much greater complexity in the choice mechanisms, and a much larger capacity in the organism for obtaining information and performing computations than do the former. Expand
Cognitive processes in choice and decision behavior
Abstract : Recent years have been important changes in research in behavioral decision theory in terms of a shift from a reliance on economic and statistical models to an emphasis on concepts drawnExpand
Who accepts Savage's axiom?
Many decision theorists believe that the axioms of rational choice are similar to the principles of logic in the sense that no reasonable person who understands them would wish to violate them. TheExpand
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
Prospect theory: analysis of decision under risk
Analysis of decision making under risk has been dominated by expected utility theory, which generally accounts for people's actions. Presents a critique of expected utility theory as a descriptiveExpand
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
Reversals of preference between bids and choices in gambling decisions.
Abstract : Subjects in 3 experiments chose their preferred bet from pairs of bets, and later bid for each bet separately. In each pair, one bet had a higher probability of winning (P bet); the otherExpand
...
1
2
3
4
5
...