Psychology Coursework                         Daniel Bowman

  Psychology Coursework

  The Framing Effect

   

     Daniel Bowman

Psychology Coursework

Contents

Abstract                                                                                        Page 3

Introduction                                                                                         Page 3

Method                                                                                         Page 4

Results                                                                                         Page 5

Discussion                                                                                        Page 6

References                                                                                         Page 9

Appendices                                                                                         Page 10

Abstract

Aim:                 To investigate whether males or females are more susceptible to the framing effect.

Procedure:         I used independent measures deign. It included a random sample (16 males and 16 females). I gave participants a scenario about Asian flu (positive or negative frame) and asked them to pick an option.

Results:         I used a Chi square to investigate my data. I did this as it was nominal. It gave me a x2 value of 2.4 which was not a significant result as my x2 value must be equal to or greater than P = <0.05 (7.82).

Conclusion:         My results did not support the framing effect and therefore endorses utility theory based on the x2 value I must accept my null hypothesis; it stated that gender does not have an influence on risk taking.

Introduction

Every day we face numerous decisions. Many decisions involve an element of risk, where it is essential to compare possible benefits with potential costs to help us choose the best course of action. In this experiment, I intend to investigate risk taking behaviour.

The first theory which was put forward to explain decision making was utility theory. It puts forward the idea that when people make decisions, they think about the probability of a given outcome and the utility of that outcome. Expected utility is calculated using the following equation:-

Expected Utility = (probability of a given outcome) x (utility of that outcome)

Tversky and Kahneman (1987) carried out the Asian Disease Study to investigate decision making. They gave participants a scenario, in which a rare disease was to kill 600 people. Participants were given two programmes to combat the disease. Programme A would save 200 lives, while programme B had a third probability that all 600 lives would be saved and a two third probability that no one would be saved. The expected utility of Programme A is 1 x 200 = 200 people saved and the expected utility of Programme B is 0.33 x 600 = 200. Therefore the two programmes are equally useful. In the investigation, 72% of participants chose programme A, suggesting that their decision was not made on a purely rational basis and suggests that participants are more likely to choose a safe option rather than taking a risk. This was further supported when Tversky and Kahneman gave other participants the same problem presented differently. In Programme A, 400 people would die, in Programme B there was a third probability that nobody would die and a two third probability that 600 people would die. Even though this is the same problem, only 22% of the participants chose programme A.

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This study demonstrates the framing effect. This means that a persons decision is influenced by the phrasing or frame in which the situation is presented. In the first account, Programme A is framed in a positive way, emphasising the number of lives that saved. In the second version, the emphasis is on the number of deaths. It seems when faced with a loss, people opt for the risky option. This experiment also demonstrates loss Aversion, in which individuals are more susceptible to losses, rather than gains. This explains the decrease in the number of participants who chose Programme A ...

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