The same information presented differently produces different decisions. The framing effect is small in any single instance and enormous in aggregate.
Ethan
Losing $100 hurts more than gaining $100 feels good. The asymmetry shapes economic behavior, political behavior, and personal decisions in ways we…
Ethan
People with low competence in a domain often overestimate their competence. The effect is real, but the popular version has drifted from…
Ethan
Once an outcome is known, we tend to believe we could have predicted it. This bias makes us harsh critics of past…
Ethan
We estimate how common something is based on how easy it is to recall examples. This heuristic is fast and often right…
Ethan
When estimating a value, the first number presented exerts disproportionate influence on the estimate, even when the number is obviously irrelevant.
Ethan
We give more weight to evidence that confirms what we already believe and discount evidence that contradicts it. This is the most…
Ethan
Money already spent should not influence future decisions. Almost everyone violates this principle. The reasons we do, and the costs we pay…
Ethan
