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Thinking and Deciding

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302 CHOICE UNDER CERTAINTY<br />

At other times we think of decisions positively as opportunities for achieving a good,<br />

as when we must choose between two attractive job offers. This perception is a<br />

matter of framing. We could think of the medical treatments as good things, if we<br />

compared them to no treatment at all. Normatively, all that matters is the relative<br />

position of the options, the differences between them. It is not the decision that<br />

makes the options good or bad relative to some other reference point. It is fate, <strong>and</strong><br />

our own frame of mind in choosing the reference point.<br />

The reference point can be manipulated. Houston, Sherman, <strong>and</strong> Baker (1991)<br />

asked subjects to choose between two options, each described in terms of a number<br />

of features, some positive <strong>and</strong> some negative. In one type of decision, the negative<br />

features were all common to both options, <strong>and</strong> the positive features were unique. For<br />

example, in a choice between two automobiles, both had such negative features as<br />

“hard to find service outlets” <strong>and</strong> “poor warranty.” But the positive features were<br />

different for the two options. If one had the feature “doesn’t need repairs often,” the<br />

other would have some other positive feature, such as “good financing available.”<br />

This method of presentation encourages subjects to ignore the common negative features<br />

<strong>and</strong> make the decision in terms of the positive features. Other choices were<br />

devised in which the positive features were shared <strong>and</strong> the negative features were<br />

unique. Each option had as many positive as negative features in all choices. Subjects<br />

took longer to make decisions when the negative features were unique than<br />

when the positive features were unique. Decisions with unique negatives seemed<br />

more difficult. If the unique features were positive, subjects were more satisfied with<br />

the decision when they focused on the chosen option (<strong>and</strong> less satisfied when they<br />

thought about the rejected option) than when unique features were negative.<br />

Another way to manipulate attention to positive <strong>and</strong> negative features is to ask<br />

subjects either to “choose” an option or to “reject” an option. We tend to choose<br />

options because of their positive features but reject them because of their negative<br />

features. If option A has more positives <strong>and</strong> more negatives than option B, we will<br />

choose A when we are asked to choose <strong>and</strong> reject A when asked to reject (Shafir,<br />

1993). For example, subjects read descriptions of two vacations. One was described<br />

as “average weather, average beaches, medium-quality hotel, medium-temperature<br />

water, average nightlife.” The other was described as “lots of sunshine, gorgeous<br />

beaches <strong>and</strong> coral reefs, ultramodern hotel, very cold water, very strong winds, no<br />

nightlife.” When asked to choose, most subjects chose the second. When asked<br />

which vacation they twould cancel if they had reservations for both at the same time,<br />

most chose to cancel the second, thus choosing the first.<br />

Individuals differ in whether they tend to think in terms of achieving gains or<br />

preventing losses. Some people think that getting two job offers is a good thing,<br />

even though they might be conflicted about which one to accept, but grouches will<br />

think of the job choice as a question of which job they will have to give up, as if<br />

their reference point were all the attractive features of both jobs. Higgins (2000) has<br />

called the gain orientation a “promotion focus” <strong>and</strong> the loss orientation a “prevention<br />

focus.” People with a promotion focus think in terms of ideals <strong>and</strong> opportunities <strong>and</strong><br />

seem to do better when the task they are given is framed in terms of gains; those with

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