People don't tend to follow rationale, objective rules when making decisions. Instead, when forced to make decisions in a state of uncertainty, our decisions can be influenced by a number of factors, such as the way a problem is posed and our assessment of the risks involved.
Decision Frame = Decisions are influenced by the way in which a decision problem is presented, even when the alternatives are formally equivalent.
- Compare evaluating a medical risk using a survival and mortality frame.
Risk Strategy = Attitudes towards risk that they bring into most decision situations. These attitudes influence whether they will make a risk-seeking or risk-aversive choices. Risk-Seeking = 85% chance to lose (LOSS)
Risk-Aversive = 85% chance to win (GAIN)
- Depends on a number of variables, decision consequences and familiarity with material.