An information processing view of framing effects: The role of causal schemas in decision making

People prefer a sure gain to a probable larger gain when the two choices are presented from a gain perspective, but a probable larger loss to a sure loss when the objectively identical choices are presented from a loss perspective. Such reversals of preference due to the context of the problem are known as framing effects. In the present study, schema activation and subjects' interpretations of the problems were examined as sources of the framing effects. Results showed that such effects could be eliminated by introducing into a problem a causal schema that provided a rationale for the reciprocal relationship between the gains and the losses. Moreover, when subjects were freed from framing they were consistently risk seeking in decisions about human Life, but risk averse in decisions about property. Irrationality in choice behaviors and the ecological implication of framing effects are discussed.