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In economics, framing means the manner in which a rational choice problem has been presented.
Amos Tversky and Daniel Kahneman have shown that framing can affect the outcome (ie. the choices one makes) of choice problems to the extent that several of the classic axioms of rational choice do not hold.
A simple example: a seller might be more persuasive if it tells you that the price of a laptop that is supposed to last 4 years (?) will cost you 1 euro a day instead of 1460 euros flat.
This framing biases is one of the themes of behavioral finance
Further reading
- "Rational Choice and the Framing of Decisions", A.Tversky, D.Kahneman, Journal of Business, 1986, vol.59, no.4, pt.2.
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