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AN EMPIRICAL EXAMINATION OF THE BIASING EFFECTS OF FRAMING ON BUSINESS DECISIONS *
Author(s) -
Mowen Maryanne M.,
Mowen John C.
Publication year - 1986
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1986.tb00245.x
Subject(s) - framing (construction) , framing effect , response bias , prospect theory , cognitive bias , empirical research , psychology , marketing , social psychology , business , economics , microeconomics , cognition , statistics , mathematics , persuasion , structural engineering , neuroscience , engineering
This paper presents results of three studies testing whether decision bias due to framing, found in consumer purchase contexts, also would occur in a business setting. In the first study, business‐student subjects displayed framing‐induced decision bias just as subjects had in an earlier study by Tversky and Kahneman [12]. When the consumer problem was recast into a business decision in the second study, student subjects trained to handle the problem still revealed bias, although to a lesser extent. In the third study, experienced business managers revealed the same pattern of decision bias as the student subjects. Implications of this bias for business decision makers are discussed.