Frame Dependence – Definition

Frame Dependence Definition

Frame dependence is a concept that explains the tendency of humans to respond to the situation in light of how the situations are presented. This belief maintains that people would react differently to situations if they are presented in another frame. For instance, people are likely to give positive reactions to situations presented in good light and negative reactions to situations presented in a bad light. Frame dependence also reflects in the ways people make decisions when faced with certain situations.

A Little More on What is Frame Dependence

Frame dependence can be related to different aspects of human lives, it reflects how people react and make decisions based on how scenarios are presented to them. This can be studied in purchase patterns, investment choices and other activities pertaining to life.

Frame dependence is a concept developed by a psychologist, Danial Kahneman, this concept has not only impacted behavioral economics but also applicable to several other disciplines pertaining to humans. The psychologist explained how people sometimes make illogical or irrational decisions based on how scenarios are presented to them.

References for “Frame Dependence”

https://www.investopedia.com › Investing › Financial Analysis

www.oxfordscholarship.com/view/10.1093/…001…/acprof-9780195161212-chapter-…

https://www.moneycontrol.com › Trading Terms

dare.uva.nl/search?identifier=de7c2ffd-e0d6-4c01-8b24-90c56873ab0a

framing.behaviouralfinance.net/

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