Behavioral Economics

Abstract

This study explores the complicated phenomenon of decision-making framing bias, shedding light on its cognitive roots, real-world implications, and countermeasures. By investigating the interaction between emotional sensitivity and objective judgment, the study illustrates the influence of framing bias on decisions. The essay demonstrates how shifting the framing can impact how something is valued using principles from Prospect Theory. This prejudice is seen in consumer decisions, public policy discussions, and media coverage. Even with education and awareness, it can be challenging to counteract framing bias in a subjective, unconscious, and media-rich environment. In doing so, it sheds light on the complex web of human decision-making and suggests potential future research routes to better understand neurological processes and design focused therapies.