Platinum's Curious Investor Behaviour

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Framing:

Since we feel losses more acutely than gains,

people tend to seek positively framed information.

In a 1984 study, physicians were presented with

a hypothetical case of an epidemic that was

expected to kill 600 people. Two programs to

combat the disease were proposed: program A

would result in 200 people saved, whereas under

program B two-thirds of the 600 people would

die. 72% of respondents chose program A, even

though the results were identical.

How do you frame your decisions – do you take

information at face value, or do you question

how it is presented?

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