The Power of Framing
If you were offered $5 today versus $10 in a month, what would you prefer? This is the exact question that was asked in a psychological experiment, which has been repeated multiple times by different experimenters and it looks like most of the people who participate in the experiment tend to choose option 1, i.e., $5 today over the $10 in a month. This proved to the experimenters the existence of a bias that we tend to value short term rewards more than long term rewards, also called “temporal discounting”. When the same question was reframed as “Would you prefer […]
