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The Power of Framing

Last update on: Jul 15 2020

Dear Reader:

Would you rather spend $3 a day for something or $1,095 a year?

Which makes you more likely to pay for something by a certain date: a 20% discount for early payment or a 20% penalty for paying later?

The answer to both these questions is supposed to be that it doesn’t matter. You’ll pay the same amount either way. But studies using these and other choices show that people’s responses often vary with the phrasing of the options. This is known as framing. It is one of the many mental errors that are hardwired into people.

Framing is widely used in advertising to increase sales and profits. It also is used in other ways to influence decisions. The results are more dramatic when framing is combined with one or more biases most people have, such as being more likely to choose a loss-limiting decision than a gain-maximizing one.

Framing and other decision-making errors persist primarily because most people don’t like to do the hard work of thinking and research. They prefer mental shortcuts, rules of thumb, intuition and “gut reactions.”

Realize that people are trying to persuade you by using framing and other mental errors against you.

You need to take the time to carefully analyze the choices. Ignore how an issue is framed or presented. Or reframe it other ways. Use a calculator to compare the options. Talk the decision over with other people. The most important way to avoid errors caused by framing and other mental mistakes is to slow down and take your time before making a decision.

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