Framing Effect
The framing effect is choosing differently between identical facts depending on whether they're described as gains or as losses.
Full definition of Framing Effect →:: COMPARE ::
Framing effectvsLoss aversion
The short answer
Loss aversion is the engine — losses loom larger than equivalent gains. Framing is the lever: it decides which side of the reference point a description drops you on, and therefore whether you're in gain territory or loss territory at all.
Side by side
| Aspect | Framing effect | Loss aversion |
|---|---|---|
| Is | A lever | An engine |
| Operates on | Wording | Value |
| Sets | The reference point | The asymmetry |
| Without the other | Wouldn't work | Still real |
What each one means
Loss Aversion
Loss aversion is the principle that losing something hurts more than gaining the same thing feels good — so we fight harder to avoid losses than to win equivalent gains.
Full definition of Loss Aversion →