Asked by FarahDika Glamours on May 02, 2024
Verified
Which of the following are examples of the framing effect?
A) Campus "Public Interest Research Groups" receive more operating funds from student registration fees when the default choice is to contribute but a box must be checked to opt out versus a default of not contributing but checking a box to contribute.
B) Shoppers often purchase extended service and warranty plans even though expected losses are much smaller than the cost of the plans.
C) In a repeated classroom experiment, half the class was randomly picked to receive an iPod Shuffle of music from the 1970s.The average value placed on the Shuffle is consistently higher for students who received the Shuffle than for those who didn't.
D) A busy executive who wants to exercise more joins a bicycling club where fellow members will exert pressure upon him if he doesn't go biking.
E) All of the above.
Framing Effect
The cognitive bias where people decide on options based on whether they are presented in a positive or negative way.
Extended Service
A service agreement that extends beyond the standard warranty period, offering additional protection or maintenance services.
iPod Shuffle
A compact and discontinued music player designed by Apple Inc., notable for its small size, lack of a screen, and shuffle feature for playing music in a random order.
- Appreciate the role of framing in shaping choices and decision-making outcomes.
Verified Answer
SG
Sarah GreenMay 08, 2024
Final Answer :
A
Explanation :
Option A is an example of the framing effect because the default choice of contributing results in more funds than the default choice of not contributing, even though the decision to contribute or not should be independent of the default. Options B, C, and D are not examples of the framing effect but may fall under other cognitive biases.
Learning Objectives
- Appreciate the role of framing in shaping choices and decision-making outcomes.