01 · Side by side

Side by side

Comparison sheet
AspectFraming effectLoss aversion
IsA leverAn engine
Operates onWordingValue
SetsThe reference pointThe asymmetry
Without the otherWouldn't workStill real
02 · Which one you meant

Which one did you mean?

In shortReaders who land here meaning Framing Effect rather than Loss aversion are usually searching for phrases like “why does 90% fat free sound better than 10% fat”, “framing effect examples”, “how wording changes decisions”.

Framing Effect

  • “why does 90% fat free sound better than 10% fat”
  • “framing effect examples”
  • “how wording changes decisions”
  • “same facts different choice”

Loss Aversion

  • “why does losing hurt more than winning feels good”
  • “why can't I sell a losing stock”
  • “loss aversion explained”
  • “protecting a streak I don't care about”
03 · Which came first

Which came first

In shortFraming effect. 1979 — Kahneman and Tversky's prospect theory establishes that people judge outcomes as gains or losses from a reference point, not as absolute states.

  1. 1979

    Framing Effect. Kahneman and Tversky's prospect theory establishes that people judge outcomes as gains or losses from a reference point, not as absolute states.

  2. 1979

    Loss Aversion. Prospect theory gives the value function a kink at the reference point — steeper for losses than for gains. Published in Econometrica by Kahneman and Tversky.

04 · Read either one

Read either one in full