Interpretation versus Reference Framing: Assimilation and Contrast Effects in the Organizational Domain

We examined conditions under which contextually activated information affects strategic decision-making and found that the subjective framing of organizational issues may be affected by variables other than semantic manipulation. Context information may be used as an interpretation frame (and lead to assimilation) or as a reference frame (and lead to contrast). Whether context information instigates assimilative interpretation or contrastive comparison processes may depend on the level of categorical context-target similarity. This is demonstrated in three experiments in which participants read an unambiguous business threat or opportunity scenario prior to judging an ambiguous, strategic issue. Findings are discussed in the light of previous judgment and decision-making studies of framing and context effects. Copyright 1998 Academic Press.