A quick note: Mark Knopfler is my favorite guitarist and lyricist. But read the lyrics to find out why I am putting up this song on EFE!
An excellent series that helps you understand business on the ground – it’s perfect momo weather right now, and hence this video – but there are many others as well.
Would your choice (or answer) be impacted by the way a particular question was framed?
Econs, to use a word coined by Richard Thaler, would scoff at such a notion. Reality, of course, indicates otherwise. Should a price be framed as a discount during a sale, should it be offered at a premium for the rest of the year? Should an insurance firm advertise how dangerous a disease is or how effective the treatment is? And should a hospital take the opposite route?
Again, in the world of the Econ, each of these questions do not matter, one’s answer should change. Work done over years, and the intuition of all us Humans indicate that it does matter. That, in a nutshell, is the framing effect.
And where the second case study I spoke of yesterday is concerned: I’ll just outsource the job to Dan Ariely.