In Daniel Kahneman’s Thinking, Fast and Slow, the framing effect is a primary example of how our irrationality is hardwired into our biology. It describes how our choices are influenced more by how information is presented than by the facts themselves.
Step-by-step method how to construct a frame
based on Kahneman’s principles of Prospect Theory
Step 1: Identify the "Reference Point"
Before framing, identify the current mental baseline of your audience. People don't evaluate outcomes in a vacuum; they evaluate them as gains or losses relative to where they are now.
Action: Ask, "What is their current status quo?"
Example: If you are asking for a budget increase, their reference point is the current budget.
Step 2: Choose Your "Valence" (Gain vs. Loss)
Decide if you want the audience to feel the "glow" of a win or the "sting" of a threat.
The Gain Frame: Focus on what is kept or earned. Best for encouraging certainty and getting people to agree to a "sure thing."
Draft: "By using this software, we will retain 95% of our customers."
The Loss Frame: Focus on what is missed or wasted. Best for encouraging risk-taking or immediate action.
Draft: "If we don't use this software, we will lose 5% of our customers every month."
Step 3: Apply "Loss Aversion" (The X2 Rule)
Kahneman’s research shows that the pain of losing is roughly twice as powerful as the joy of gaining.
Action: If you want someone to change their behavior, emphasize what they are currently losing by not changing.
The "Sunk Cost" Pivot: Instead of saying "You'll save $1,000," try "You are currently throwing away $1,000 every year."
Step 4: Utilize "Narrow" vs. "Broad" Framing
Narrow Framing: Focus on a single, isolated decision. This makes risks feel more intense. Use this if you want someone to be cautious about one specific choice.
Broad Framing: Group multiple choices together (e.g., looking at a whole year instead of one day). This reduces the emotional impact of a single loss. Use this to encourage long-term investment.
Step 5: Conduct the "Inversion Test" (The System 2 Check)
This is the quality control step. Before finalizing your frame, state the exact opposite to see if it feels different.
Process: 1. Write your pitch: "This project has a 70% chance of success." 2. Write the inversion: "This project has a 30% chance of failure."
Adjustment: If the inversion makes the project sound unacceptable, your original frame might be "masking" the risk rather than communicating it.
How to Beat the Frame
Kahneman suggests that to overcome this, you must manually activate System 2. One of the best ways to do this is to reframe the problem yourself. If someone gives you a "survival" stat, consciously calculate the "death" stat. If a discount is offered, calculate the total cost you are still spending.
