108 Framing Principles, Persuasion Techniques, and Influential Strategies Before you read on, please do make your

choice. These are the situations that Kahneman, Slovic, and Tversky (1982) presented to hundreds of subjects. Situations A and B are 100 percent identical, but most people choose differently in each situation because of the framing. In both situations you are deciding whether you want $1,500 guaranteed or have a 5050 chance of ending up with either $1,000 or $2,000. How do most people respond? In situation A, 84 percent of people choose the certain $1,500 (the first option). Only 16 percent gamble on the 5050 chance of ending up with either $1,000 or $2,000. In Situation B, 31 percent of people choose the certain $1,500 (the first option). A full 69 percent are willing to gamble on the 5050 chance of ending up with either $1,000 or $2,000. The situations are 100 percent identical yet the frame makes all the difference in the world as to how people decide. Question: Examine the two frames (situations) carefully.What is the difference between the frames and why do you think people choose the way they do? How might you utilize your hypotheses in your own interactions? Here are a few lessons we learn from research that examines frames and choices: Lesson A: People do not necessarily decide what is best for them; they decide what presentation of facts is more attractive. Lesson B: Because we all succumb to the presentation of facts (and fallacies) and not to reality itself, we all need to look at any important decisions from all points of view. Lesson C: People will lock in a sure gain in favor of any risk in the future, but they will let their losses run. (Example: People hold a stock today at 10 that they bought at 70 because they have so much in the stock. This is one of the stupidest things people do. They should take the money and invest in the instrument that holds the highest probability of appreciation.)