Tversky & Kahneman (1981)

The Framing of Decisions and the Psychology of Choice

The Asian Disease

Framing of Outcomes

Imagine that the U.S. is preparing for the outbreak of an unusual Asian disease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume that the exact scientific estimate of the consequences of the programs are as follows:

Problem 1: Gain Framing
  • If Program A is adopted, 200 people will be saved. [72%]
  • If Program B is adopted, there is $1/3$ probability that 600 people will be saved, and $2/3$ probability that no people will be saved. [28%]

Which of the two programs would you favor? [N = 152]

Problem 2: Loss Framing
  • If Program C is adopted, 400 people will die. [22%]
  • If Program D is adopted, there is $1/3$ probability that nobody will die, and $2/3$ probability that 600 people will die. [78%]

Which of the two programs would you favor? [N = 155]

Concurrent Decisions

Framing of Acts

Problem 3: Two Separate Decisions

Imagine that you face the following pair of concurrent decisions. First examine both decisions, then indicate the options you prefer. [N = 150]

Decision (i). Choose between:

  • A. a sure gain of $\$240$ [84%]
  • B. 25% chance to gain $\$1000$, and 75% chance to gain nothing [16%]

Decision (ii). Choose between:

  • C. a sure loss of $\$750$ [13%]
  • D. 75% chance to lose $\$1000$, and 25% chance to lose nothing [87%]
Problem 4: One Combined Decision

Choose between: [N = 86]

  • A & D. 25% chance to win $\$240$, and 75% chance to lose $\$760$. [0%]
  • B & C. 25% chance to win $\$250$, and 75% chance to lose $\$750$. [100%]

Certainty and Pseudocertainty

Framing of Contingencies

Each problem was presented to a different group of respondents. Each group was told that one participant in ten, preselected at random, would actually be playing for money. Chance events were realized, in the respondents’ presence, by drawing a single ball from a bag containing a known proportion of balls of the winning color, and the winners were paid immediately.

Problem 5: A Sure Win

Which of the following options do you prefer? [N = 77]

  • A. a sure win of $\$30$ [78%]
  • B. 80% chance to win $\$45$ [22%]
Problem 6: A Two-Stage Game

Consider the following two-stage game. In the first stage, there is a 75% chance to end the game without winning anything, and a 25% chance to move into the second stage. If you reach the second stage you have a choice between: [N = 85]

  • C. a sure win of $\$30$ [74%]
  • D. 80% chance to win $\$45$ [26%]

Your choice must be made before the game starts, i.e., before the outcome of the first stage is known. Please indicate the option you prefer.

Problem 7: No Sure Win

Which of the following options do you prefer? [N = 81]

  • E. 25% chance to win $\$30$ [42%]
  • F. 20% chance to win $\$45$ [58%]

The Epidemic

Certainty and Pseudocertainty with Losses

A question dealing with the response to an epidemic. Two alternative programs have been proposed.

Version 1: A Sure Loss

Which program do you prefer?

  • a sure loss of 75 lives
  • 80% chance to lose 100 lives [most]
Version 2: Two Viruses

The risk to life exists only in the event (probability $.10$) that the disease is carried by a particular virus. If the disease is carried by another virus (probability $.90$), no lives are lost. If the critical virus is involved, the two programs yield:

  • a sure loss of 75 lives
  • 80% chance to lose 100 lives [most]

Which program do you prefer?

Version 3: No Sure Loss

Which program do you prefer?

  • 10% chance to lose 75 lives [most]
  • 8% chance to lose 100 lives
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