Influence Of Decision Making

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Decision making can be influenced by many factors. The way a person analyzes the problem can have an effect on his or her choice. Age can also influence a decision made based on experience of familiarity with the scenario. One should consider all the factors that are available in order to judge why someone made a certain decision. The way one frames a question has been noted to have effects on the decision of the participant.
The framing effect occurs when people react to choices differently depending on how the choice is presented to them. When the choice is presented as a loss, people tend not to react to such questions positively, but when they are presented as a gain, people will react positively. Therefore, it can be concluded that the framing effect is a perfect example of the cognitive bias process. Research shows that, in a positive frame, people will tend to avoid risk. In a negative frame, the effects will be directly opposite; people will tend to accommodate the risks associated with the questions (Levin, Schnittjer & Thee, 1988). The prospect theory shows that, in any case, the loss of any kind tends to be more significant that any gain of the same magnitude (Kahneman & Tversky, 1979). In making a decision, surety is always favored over estimation. People will tend to accept a sure gain than a probabilistic gain. The opposite of that occurs when it comes to loss. A probabilistic loss is more preferred as compared to a definite loss.
Positive and negative frames do have a great impact on decision-making. Framing used on the question usually binds a decision maker. Therefore, the decision maker will make his or her choices depending on the framing option used. A good example of the framing effect in action is the int...

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... trying to find, versus a participant who had no clue about this effect. The participants who did not know about the framing effect made decisions based on the influence of the frames, but the participants who knew, probably were resistant towards the framing effect. The results found in the study were only significant for the positive frame, meaning people will choose an absolute gain over and absolute loss when the question is framed positively. There was no difference when the negative frame was used. People will not be inclined to an estimated gain nor and estimated loss when asked in a negative frame. There is an equal chance for people to choose either option instead of being risk seekers because of the negative frame. There are many factors that influence an individual to make a certain choice and the framing effect contributes to the decision making process.
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