The Framing of Decisions and the Psychology of Choice

Summary. The psychologicalprinciplesthat govern the perceptionof decision prob- lems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways. Reversals of prefer- ence are demonstrated in choices regarding monetary outcomes, both hypothetical and real, and in questions pertaining to the loss of human lives. The effects of frames on preferences are compared to the effects of perspectives on perceptual appear- ance. The dependence of preferences on the formulation of decision problems is a significant concern for the theory of rational choice.