Because of framing we perceive the same facts differently.

How “Less Might Be More” at the World Cup

Jun 15, 2014 • 397 Views
EST. TIME TO READ: 2 minutes

In a study of the Barcelona Olympics, researchers concluded that winners of the bronze medal tended to be happier than the athletes who got the silver.

Please look at the expressions (below) of the Olympic medal winners for the 200-meter individual medley at Beijing in 2008. Michael Phelps (center) won the gold. Doesn’t the silver medalist on the left look rather glum?

Framing influenced the happiness of  the medal winners

Michael Phelps, gold (C); Laszlo Csech, silver (L); Ryan Lochte, bronze (R) From: AP Photo

Where are we going? Even when an accomplishment is an objective fact, our perceptions of its value can vary.

According to the Barcelona Olympics paper, silver and bronze medalists feel differently because of their reference points. Focusing on what could have been, the silver medalist thinks, “if only…” and “why didn’t I just…” By contrast, bronze winners tend to take pride in having won a medal and topping so many other competitors. The silver medalist looks “upward” to the gold winner as his or her reference point while the bronze looks “downward” to all those who won nothing.

Our bottom line: Reference points take us to a phenomenon that behavioral economists call framing. The context within which we assess an accomplishment–its frame–is created by our reference points. At work we will be unhappy with a 5% raise when an associate gets 7%. If our stock portfolio plunges, we don’t feel so bad if the S&P declined even more.

How might framing affect our emotions during a World Cup 2014 game? Please let us know in a comment.

 

Sources and more...Nobel Economics prize winner Daniel Kahneman (a psychologist) explains his research on framing in his excellent book, Thinking Fast and Slow. For more of an academic perspective, I also recommend the paper on the Barcelona Olympic medal winners (perfectly titled "When Less Is More...") and Teaching Company Lecture #23 from their behavioral economics course (which needs to be purchased).

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