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4.3 Framing the problem

As you saw in Activity 1, how a problem is framed can have a significant effect on how you make decisions. Medical decisions can be affected by whether outcomes are framed as likelihood of deaths or of saving patients. Financial decisions can be affected by whether you see yourself in a position of loss or gain. In a position of gain we tend to become risk averse; in a position of loss we will tend to take risks to avoid or recover losses. You may know people who are good at using this
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Licensed under a Creative Commons Attribution - NonCommercial-ShareAlike 2.0 Licence - see http://creativecommons.org/licenses/by-nc-sa/2.0/uk/ - Original copyright The Open University

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