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Reframe the problem or the solution

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?.

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Reframe the problem or the solution

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  1. Reframe the problem or the solution November 15, 2010

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

  3. Use reframing to make things stick

  4. 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!”

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

  6. 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)?

  7. 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 Cohen, 2003

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

  9. 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

  10. 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

  11. 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¢

  12. Reframing

  13. 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?

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

  15. 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

  16. Prospect theory

  17. 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

  18. Construal even happens in Japan! • Some investment advice

  19. 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%

  20. 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

  21. 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

  22. 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

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

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

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

  26. 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

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