The Hidden Traps in Decision Making
Fun fact from the HBR paper
(costs USD 8,95 to download)
The authors examined (among other things) how framing questions using words of winning or losing affected decisions taken by insurrance experts.
The same recovery plan for sunken barges with two choices was described using either in terms of profit or loss.
71% chose the the choice with less risk, when the question was asked using terms of profit.
80% chose the the choice with the highest risk, when the question was asked using terms of possible loss.
So, the majority of people are risk minimizing in their decisions, when questions are presented in terms of possible profit, and risk seeking when questions are presented in terms of possible loss.