Tversky and Kahneman (1981)

Question 1

Aim

Answer 1

to test the idea that participants based the utility of possible outcomes based on a set reference point.

Question 2

Procedure

Answer 2

The participants were given a scenario about an outbreak of an Asian disease coming to their country. They were split into two groups with different reference points and were given two programs to chose from. For Group 1, program A said that 200 people will be saved. program b was that there was a 1/3 probability that 600 people will be saved, and 2/3 probability that no one will be saved. For Group B, the program 1 said that 400 people will die. Program 2 said that there is a 1/3 probability that no one will die, and a 2/3 probability that 600 people will die.

Question 3

Results

Answer 3

In group 1, 72% chose program A, 28% chose program B. In group 2, 22% chose program A, 78% chose program B

Question 4

Findings

Answer 4

Although both outcomes are exactly the same, the participants focused more on the positive program. People would much rather say they saved people rather than say they let people die, even though the final outcome is the same. This is called the framing effect.