Reframe the problem or the solution November 15, 2010

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

Use reframing to make things stick

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!”

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

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

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

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

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

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

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¢

Reframing

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?

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

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

Prospect theory

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

Construal even happens in Japan! Some investment advice

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%

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

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

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

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

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

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

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