The framing effect in risky decision making 2500-PL-PS-FO2-01

The framing effect in risky decision making is a cognitive bias described first by Tversky and Kahneman (1981, 1986). It consists in the shift of the preference for risk taking depending on whether the same decision problem is formulated (i.e. framed) in gains (gain domain) or in losses (loss domain). In gain domain people tend to prefer risk avoidance but in loss domain they become risk seeking. Apart from risky decision making, the framing effect is observed in research on persuasion (goal framing effect and attribute framing effect).
The course is designed to discuss the nature of the framing effect, the psychological processes underlying its emergence and the factors which reduce a decision maker's susceptibility to the impact of the frames

The framing effect in risky decision making is a cognitive bias described first by Tversky and Kahneman (1981, 1986). It consists in the shift of the preference for risk taking depending on whether the same decision problem is formulated (i.e. framed) in gains (gain domain) or in losses (loss domain). In gain domain people tend to prefer risk avoidance but in loss domain they become risk seeking. Apart from risky decision making, the framing effect is observed in research on persuasion (goal framing effect and attribute framing effect).
The course is designed to discuss the nature of the framing effect, the psychological processes underlying its emergence and the factors which reduce a decision maker's susceptibility to the impact of the frames

Core readings

LITERATURA PODSTAWOWA
- Kahneman, D. (2013). Pułapki myślenia. O myśleniu szybkim i wolnym (s. 369-382). Poznań: Media Rodzina.
- Rutkowska, D., Przybyszewski, K. (2015). Efekt sformułowania (framing effect): zaangażowanie poznawczego wysiłku a wpływ kontekstualnych informacji o zysku lub stracie na podejmowanie decyzji. Psychologia Społeczna, 10, 3(34), 248-265.
- Sokołowska, J. (2005). Psychologia decyzji ryzykownych. Ocena prawdopodobieństwa i modele wyboru w sytuacji ryzykownej (s. 113-124). Warszawa: Wydawnictwo SWPS Academica.
- Tyszka, T. (2010). Decyzje. Perspektywa psychologiczna i ekonomiczna (s. 122-125). Warszawa: Wydawnictwo Naukowe: Scholar.

LITERATURA DO POSZCZEGÓLNYCH ZAJĘĆ
1.& 2.
- Tversky, A., Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211, 453-458.
- Levin, I. P., Schneider, S. L., Gaeth, G. J. (1998). All frames are not created equal: A typology and critical analysis of framing effects. Organizational Behavior And Human Decision Processes, 76(2), 149-188.
- Maule, J., Villejoubert, G. (2007). What lies beneath: Reframing framing effects. Thinking & Reasoning, 13(1), 25-44.

3. McElroy, T., Seta, J. J. (2007). Framing the frame: How task goals determine the likelihood and direction of framing effects. Judgment and Decision Making, 2(4), 251-256.

4. Takemura, K. (1994). Influence of elaboration on the framing of decision. The Journal of Psychology, 128(1), 33-39.

5. Simon, A. F., Fagley, N. S., Halleran, J. G. (2004). Decision framing: Moderating effects of individual differences and cognitive processing. Journal of Behavioral Decision Making, 17(2), 77-93.

6. McElroy, T., Seta, J. J. (2003). Framing effects: An analytic – holistic perspective. Journal of Experimental Social Psychology, 39(6), 610-617.

7. Kuo, F-Y., Hsu, Ch-W, Day, R-F., (2009). An exploratory study of cognitive effort involved in decision under framing – an application of an eye-tracking technology. Decision Support System, 48, 81-91.

8. Gonzalez, C., Dana, J., Koshino, H. i Just, M. (2005). The framing effect and risky decisions: examining cognitive functions with fMRI. Journal of Economic Psychology, 26(1), 1-20.

9. Igou, E. R., Bless, H. (2007). On undesirable consequences of thinking: framing effects as a function of substantive processing. Journal of Behavioral Decision Making, 20(2), 125-142.

10. Fagely, N. S., Coleman, J. G., Simon, A. F. (2010). Effects of framing, perspective taking, and perspective (affective focus) on choice. Personality and Individual Differences, 48(3), 264–269.

11. Kühberger, A., Gradl, P. (2013). Choice, rating and ranking: framing effects with response modes. Journal of Behavioral Decision Making, 26(2), 109-117.

12. Meyers-Levy, J., Maheswaran, D. (2004). Exploring message framing outcomes when systematic, heuristic, or both types of processing occur. Journal of Consumer Psychology, 14(1 i 2), 159-167

13. Keller, P. A., Lipkus, I. M., Rimer, B. K. (2003). Affect, framing, and persuasion. Journal of Marketing Research, 40(1), 54-64.

14. Levin, I. P., Gaeth, G. J., Schreiber, J., Lauriola, M. (2002). A new look at framing effects: distribution of effect sizes, individual differences, and independence of types of effects. Organizational Behavior and Human Decision Processes, 88(1), 411-429.

Core readings

LITERATURA PODSTAWOWA
- Kahneman, D. (2013). Pułapki myślenia. O myśleniu szybkim i wolnym (s. 369-382). Poznań: Media Rodzina.
- Rutkowska, D., Przybyszewski, K. (2015). Efekt sformułowania (framing effect): zaangażowanie poznawczego wysiłku a wpływ kontekstualnych informacji o zysku lub stracie na podejmowanie decyzji. Psychologia Społeczna, 10, 3(34), 248-265.
- Sokołowska, J. (2005). Psychologia decyzji ryzykownych. Ocena prawdopodobieństwa i modele wyboru w sytuacji ryzykownej (s. 113-124). Warszawa: Wydawnictwo SWPS Academica.
- Tyszka, T. (2010). Decyzje. Perspektywa psychologiczna i ekonomiczna (s. 122-125). Warszawa: Wydawnictwo Naukowe: Scholar.

LITERATURA DO POSZCZEGÓLNYCH ZAJĘĆ
1.& 2.
- Tversky, A., Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211, 453-458.
- Levin, I. P., Schneider, S. L., Gaeth, G. J. (1998). All frames are not created equal: A typology and critical analysis of framing effects. Organizational Behavior And Human Decision Processes, 76(2), 149-188.
- Maule, J., Villejoubert, G. (2007). What lies beneath: Reframing framing effects. Thinking & Reasoning, 13(1), 25-44.

3. McElroy, T., Seta, J. J. (2007). Framing the frame: How task goals determine the likelihood and direction of framing effects. Judgment and Decision Making, 2(4), 251-256.

4. Takemura, K. (1994). Influence of elaboration on the framing of decision. The Journal of Psychology, 128(1), 33-39.

5. Simon, A. F., Fagley, N. S., Halleran, J. G. (2004). Decision framing: Moderating effects of individual differences and cognitive processing. Journal of Behavioral Decision Making, 17(2), 77-93.

6. McElroy, T., Seta, J. J. (2003). Framing effects: An analytic – holistic perspective. Journal of Experimental Social Psychology, 39(6), 610-617.

7. Kuo, F-Y., Hsu, Ch-W, Day, R-F., (2009). An exploratory study of cognitive effort involved in decision under framing – an application of an eye-tracking technology. Decision Support System, 48, 81-91.

8. Gonzalez, C., Dana, J., Koshino, H. i Just, M. (2005). The framing effect and risky decisions: examining cognitive functions with fMRI. Journal of Economic Psychology, 26(1), 1-20.

9. Igou, E. R., Bless, H. (2007). On undesirable consequences of thinking: framing effects as a function of substantive processing. Journal of Behavioral Decision Making, 20(2), 125-142.

10. Fagely, N. S., Coleman, J. G., Simon, A. F. (2010). Effects of framing, perspective taking, and perspective (affective focus) on choice. Personality and Individual Differences, 48(3), 264–269.

11. Kühberger, A., Gradl, P. (2013). Choice, rating and ranking: framing effects with response modes. Journal of Behavioral Decision Making, 26(2), 109-117.

12. Meyers-Levy, J., Maheswaran, D. (2004). Exploring message framing outcomes when systematic, heuristic, or both types of processing occur. Journal of Consumer Psychology, 14(1 i 2), 159-167

13. Keller, P. A., Lipkus, I. M., Rimer, B. K. (2003). Affect, framing, and persuasion. Journal of Marketing Research, 40(1), 54-64.

14. Levin, I. P., Gaeth, G. J., Schreiber, J., Lauriola, M. (2002). A new look at framing effects: distribution of effect sizes, individual differences, and independence of types of effects. Organizational Behavior and Human Decision Processes, 88(1), 411-429.