Negative Effects Of Decision Making

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Positive and Negative Framing Effects on Decision Making Frequently, people come across situations in which decisions are needed, some important, others are urgent, and there are ones that are both urgent and important. Decision making is a cognitive process of selecting a choice from options that are given (Tversky & Kahneman 1981). Sometimes making a decision entails uncertainty and notoriously known to be difficult. One way a person can make a decision is to critically evaluate the information given. Some strategies used to make a decision are; gathering information, know the risk/consequences, know the alternatives, know the benefits, and find out what the biased information presented (Kahneman & Tversky, 1979). A biased information, …show more content…
This information usually has a positive or a negative frame, and is usually formatted as a gain or a loss. Additionally, when presented with information that is shown to be a gain, for example; receiving a gain of $500, people tend to be risk averse. Moreover, when information is presented as a loss, for example; a sure loss of $500, people tend to become risk taking, and will take that chance. There are studies done to evaluate how much framing can effect a person’s decision making. A study done by Kahneman and Tversky (1981), found that how information is labeled/ described/ asked can manipulate preferences and judgements. Consider this, which baseball player would you rather have on your team? One who makes 65% home runs or one who misses 35% of home runs? According to Tversky and Kahneman, people would choose the first …show more content…
Framing effects have been observed in personal decisions. Additionally, research has found that people tend to underestimate probable outcomes, than outcomes that are certain. A study done by Levin (1988), researched framing effects and personal decisions, in particular cheating and involvement. He found that the more personally involved a person is, the more likely chance they will be effected by framing. Furthermore, research has also found that people tend to underestimate outcomes that are probable unlike outcomes that are certain. Framing effects have also been observed in the success or failure and mortality or survival on decisions of medical treatments. Along with the other research done on framing, McNeil, Paucker, and Tverskey (1988) have found that people will interpret the given information to them that is obscure and unclear. The researchers wanted to investigate whether participants will choose between surgery or radiation therapy for lung cancer in a mixed frame. They found that, more participants had chosen the mortality frame which means that death/mortality a negative condition, can have a greater impact on a person, then a positive condition. In their second study, they investigated whether or not participants would choose to become pregnant, even if there was a risk. They found that people interpret mixed or ambiguous frames in their own way, that

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