The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.

What is an example of the framing effect?

The framing effect is a cognitive bias that impacts our decision making when said if different ways. In other words, we are influenced by how the same fact or question is presented. For example, take two yogurt pots. One says “10 percent fat” and another says “90 percent fat free”.

Why does the framing effect happen?

Framing effects occur when the decisions that people make change as a result of the way in which the outcomes are described to the participant. Typically, framing effects are revealed as aversions to risk when gambles are presented as gains, and preferences for risk when presented as losses.