Framing Effect

Definition

Health Economics

  • This is sometimes thought of as an 'irrational' (in terms of expected utility theory) response by subjects in experiments. It occurs when the same question, asked in somewhat different ways, elicits different answers. For example, people respond differently according to whether the choices presented to them are framed in terms of gains or in terms of losses. But, of course, this may not be irrational at all and, indeed, is not in the context of prospect theory.
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