Abstract
Framing bias is an individual decision-making misconception caused by the fact that a person interprets the surrounding world according to a decision frame chosen by her or his subjective opinion. This article aims to review various kinds of factors that cause and affect framing or lead to debiasing, i.e. a decrease in the resulting framing bias. The objective of the study is carried out using a literature review that analyzes recent empirical studies. As a result, numerous factors are identified that according to the studies have an impact on framing. It transpires that four broader groups of these factors can be established – decision situation setup (amount of information, additional presentation of options), experience (knowledge, engagement), effort (attention, complexity, the amount of information to process) and demographics (gender, nationality).
Highlights
The literature building upon neoclassical economic theory considers man to be a rational being, which allows neat mathematical analysis of human decision‐making
Goffman (1986) argues that people interpret the surrounding world according to the primary frame they choose based on their subjective opinions
The key element of framing is the reference point which is used for evaluating events that may result from a decision - a typical reference point may be current profit level (Thaler, 1999) or target income (Camerer et al, 1997)
Summary
The literature building upon neoclassical economic theory (i.e. authors like Friedman, von Neumann, or Morgenstern) considers man to be a rational being, which allows neat mathematical analysis of human decision‐making. The key element of framing is the reference point which is used for evaluating events that may result from a decision - a typical reference point may be current profit level (Thaler, 1999) or target income (Camerer et al, 1997). Changes to this reference point can have a major impact on the way a judgment is assessed, and on a chosen procedure (Kahneman and Tversky, 1979)
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