1. Reframe the problem or the solution
November 15, 2010

2. Overview What is framing? What can it do to help guide good choices?
What are some useful examples, and can we build on them?

3. Use reframing to make things stick

4. What is reframing?
It’s presenting the same option in different formats
This can change people’s opinions, choices, and preferences
Both formats are accurate, and convey the same information
The meaning of that information is what differs
REFRAMING: “Our new fan uses 50% less energy than our old fan!” versus “Our old fan uses twice as much energy as our new fan!”
NOT REFRAMING: “Our new fan uses 50% less energy than our old fan!” versus “Our new fan uses twice as much energy as our old fan!”

5. Make a good thing better…
Know your audience
Know your numbers
Know your reference point
Know your strengths

6. Palestinian delegation
Reactive devaluation
Proposal offered by the Palestinians on 5/10/93
“How good is the proposal for Israel (1-7)?” minus “How good is the proposal for the Palestinians (1-7)?
Participants
Putative source
Israeli delegation
Palestinian delegation
Israeli Jews
-0.95
-2.45
Israeli Arabs
0.93
-0.01

7. Participants’ own affiliation
Party over policy
Participants evaluate a welfare reform bill
Some participants were told that the bill was written by Republicans, others told it was written by Democrats
Ps indicate (on a 1-7 scale) how much they are in favor of the bill
Bill was written by
Participants’ own affiliation
Liberal
Conservative
Democrats
5.46
2.69
Republicans
3.15
5.49
Cohen, 2003

8. Make a good thing better…
Know your audience
Know your numbers
Know your reference point
Know your strengths

9. The cost of safety School buses used to occasionally catch on fire
Safety features could have been added to newly built buses that would help prevent this from happening
These features would cost about $1000 per bus

10. The cost of safety
Some people were not in favor of adding these features
Their math:
30,000 new buses per year X $1000 = an extra $30 million a year school districts would have to spend
Only about 30 schoolchildren died this way per year, so each saved life cost $1 million

11. The cost of safety
Fans of not burning children alive had different math
Buses usually last 10 years, so the cost per year per bus is only $100
The cost per school day per bus is 56¢
The cost per pupil per day is less than half of 1¢

12. Reframing

14. A treat
It’s hot, and you’re at the beach. You want a refreshment. How much would you pay for this Häagen Dazs ice cream?

15. Make a good thing better…
Know your audience
Know your numbers
Know your reference point
Know your strengths

16. Framing effects
Imagine that the country is preparing for the outbreak of an unusual disease, which is expected to kill 600 people. Two programs have been proposed.
If program A is adopted, 200 people will be saved
If program B is adopted, there is a 1/3 chance that 600 people will be saved, and a 2/3 chance that no one will be saved
Imagine that the country…
If program C is adopted, 400 people will die
If program D is adopted, there is a 1/3 chance that nobody will die, and a 2/3 chance that 600 will die
Tversky & Kahneman, 1981

17. Prospect theory

18. Prospect theory
People are risk averse when choosing among gains, and risk seeking when choosing among losses
Compare:
Winning $740 versus taking a 75% chance to win $1000
Losing $750 versus taking a 75% chance to lose $1000
Loss aversion: losses loom larger than gains
Consider a gamble where you have a 50% chance of winning $1000 and a 50% chance of losing $1000

19. Construal even happens in Japan!
Some investment advice

20. Construal and saving
Northwestern Mutual survey of 2,741 household decision makers (all bachelor’s degree or higher) earning at least $75,000. Survey conducted September 2003, with sample balanced and weighted according to U.S. Census averages.
Could you comfortably save 20% of your household’s annual income at this point in your life?
YES = 51%
Could you comfortably live on 80% of your household’s annual income at this point in your life?
YES = 77%

21. Mental accounting
Imagine that you have decided to see a play and paid the admission price of $20 per ticket. As you enter the theater, you discover that you have lost the ticket. The seat was not marked and the ticket cannot be recovered.
Would you pay $20 for another ticket?
46% say yes
Tversky & Kahneman, 1984

22. Mental accounting
Imagine that you have decided to see a play where admission is $20 per ticket. As you enter the theater, you discover that you have lost a $20 bill
Would you still pay $20 for a ticket to the play?
88% say yes
Tversky & Kahneman, 1984

23. Mental accounting
Why are people generally willing to buy a ticket after having lost $20, but not willing to buy another ticket after having lost their previous ($20) ticket?
It matters what “mental account” you file the loss under:
If you lose the ticket and buy another, you have just increased the price of the play to $40
But if you lose $20 and then buy a ticket, the price of the play is still only $20

24. Make a good thing better…
Know your audience
Know your numbers
Know your reference point
Know your strengths

25. Framing effects Pro-life versus pro-choice Liberal versus progressive
Terrorists versus freedom fighters
Cash discounts versus credit card surcharges

28. Make a good thing better…
Know your audience
Know your numbers
Know your reference point
Know your strengths
Know your limits

30. Summary If all else fails, redescribe your issue:
Emphasize (or deemphasize) the source
Do the math
Give a good starting place
Emphasize your best features