How Outcome Framing and Feedback Influence Decision Patterns over Time

Maria Paula Armenta1, Sébastien Hélie1

  • 1Department of Psychological Sciences, Purdue University, West Lafayette, IN 47907, USA.

Summary

Repeatedly framing decisions around losses, rather than gains, can decrease risk-taking over time. This study shows how loss aversion and feedback influence effortful choices and frustration.

Related Concept Videos

Framing Effects03:26

Framing Effects

Information is everywhere and its presentation—such as how and when items are presented—can impact our perceptions and decisions surrounding the info. This broad concept umbrellas framing effects—influences that occur due to the way information is framed in its appearance, whether it’s purely the order or the specific wording of a message. Let’s take a look at numerous ways in which two versions of something can objectively say the same thing, yet we respond in different ways based on the...
Hindsight Biases01:12

Hindsight Biases

Hindsight bias leads you to believe that the event you just experienced was predictable, even though it really wasn’t. In other words, you knew all along that things would turn out the way they did. Can you relate this to the phrase "Hindsight is 20/20" now?
Decision Making01:20

Decision Making

Decision-making is a fundamental cognitive process that involves evaluating alternatives and selecting among them. This process can range from simple choices, such as deciding what to wear, to complex decisions, like choosing a major in college or a career path. The complexity of the decision often dictates the approach we use, which can be broadly categorized into two types: automatic and controlled decision-making.
Automatic decision-making is fast, intuitive, and relies on gut feelings...
First Impression01:09

First Impression

First impressions play a crucial role in social perception, shaping how individuals assess others in professional, academic, and interpersonal contexts. Psychological research highlights the significance of cognitive biases, such as the primacy and recency effects, which influence how people interpret and recall information.The Primacy Effect and Cognitive AnchoringThe primacy effect describes the tendency for initial information to impact judgment disproportionately. When individuals encounter...
Counterfactual Thinking01:19

Counterfactual Thinking

Counterfactual thinking is a cognitive process wherein individuals mentally reconstruct alternative versions of past events, often beginning with “what if” or “if only.” This reflective mechanism plays a significant role in shaping emotional experiences and guiding future behavior. Though typically triggered by unfavorable or unexpected outcomes, counterfactual thinking can also emerge in mundane, everyday decisions and experiences, revealing its deep entrenchment in human cognition.Types of...
Sources of Self-Esteem II: Performance Feedback01:24

Sources of Self-Esteem II: Performance Feedback

Self-esteem is intricately tied to our perception of competence and our ability to exert control over our lives. One of the primary sources of this perception is performance feedback — the ongoing evaluation of our actions in terms of success and failure. According to Franks and Marolla (1976), people derive self-worth from experiencing themselves as causal agents, capable of achieving goals and overcoming obstacles. This process nurtures a critical component of self-esteem: self-efficacy,...