INFLUENCE OF FRAMING BIAS ON THE DECISION-MAKING PROCESS OF AN INDIVIDUAL

Abstract

The process of decision making is very crucial for both the individuals and the organisations. However, a lot of different components can influence the process and outcomes of decision making. Framing bias is one such component. Framing bias refers to the way a piece of information is presented in such a way that it can influence the decision making process and its outcome of an individual. This study aims to examine the influence of framing bias on the decision making process of an individual. The ways one can mitigate or avoid the negative impact of framing bias. Framing bias in general, is a cognitive bias where the way in which the information is presented or in which the information is framed leaves an impact on the process and outcomes of decision making. The research reviews a number of different studies and researches conducted in various verticals like, politics, finance, healthcare, news etc., to understand the impact of framing bias. A questionnaire was also floated among the students of Delhi School of Management, Delhi Technological University and some other professionals. The research point to the fact that the framing bias can indeed lead an individual to to choose for the options or alternatives that are not rational (i.e., suboptimal). The study also explains the various methods to mitigate and minimize the effect of framing bias, like giving emphasis on critical thinking and spreading awareness about the bias and its effects. It is also necessary to recognise and address the phenomenon called framing bias to achieve better results in decision making. The study also highlights the areas of application of the bias and factors causing the bias. These factors include individual differences, contextual factors, and valence and magnitude of the message.