Overview
The way options are presented can have a significant effect on our decisions.
Types
| Name | Description | Sources |
|---|---|---|
| Loss Aversion | The perceived disutility of giving up an object is greater than the utility associated with acquiring it. | [1] [2] |
| Distinction Bias | The tendency to view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately. | [1] [3] |
| Framing effect | Drawing different conclusions from the same information, depending on how that information is presented. | [1] |
Practical Perspectives
- Awareness of presentation effects can aid decision-makers in accurately considering the available options, free of the effects of the presenters of those options.
References & Acknowledgements
[1] Wikipedia contributors. "List of cognitive biases." Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 14 Jul. 2020. Web. 23 Jul. 2020. link
[2] (Kahneman, Knetsch & Thaler 1991, p. 193) Daniel Kahneman, together with Amos Tversky, coined the term "loss aversion."
[3] Hsee CK, Zhang J (May 2004). "Distinction bias: misprediction and mischoice due to joint evaluation". Journal of Personality and Social Psychology. 86 (5): 680–95. CiteSeerX 10.1.1.484.9171. doi:10.1037/0022-3514.86.5.680. PMID 15161394.
Content derived from the hard work of many Wikipedia contributors and thus licensed under the Creative Commons CC-BY-SA 3.0, click here to read the license. Read more about our content approach here and see references above for specific source attributions.
← Risk Information →