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Monday, November 29, 2010

Nudge: Post #8

Framing: Context determines how people will react because most reaction is Automatic. People are much less Reflective and often don’t take the time to think, thus rely on their less rational Automatic decision helpmate. Choices often depend on how problems are stated. The authors offer a great example relevant to public policy about energy use. Option A: “If you use energy conservation methods, you will gain $350 a year.” Option B: “If you do not use energy conservation methods, you will lose $350 a year.” Given the previous discussion on “Gains and Losses,” can you guess which approach works best? Of course, Option B. So, framing works based on how things are stated and by what people will gain or lose.

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