Being influenced by problem framing: The decision response of a manager can be influenced by the mere wording of a problem. For example, consider a manager faced with a decision about salvaging the cargo of three barges that sank off the coast of Alaska. If managers are given the option of approving (A) a plan that has a 100 percent chance of saving the cargo of one of the three barges, worth $200,000, or (B) a plan that has a one third chance of saving the cargo of all three barges, worth

$600,000 and a two thirds chance of saving nothing, most managers choose option A. The same problem with a negative frame would give managers a choice of selecting (C)

a plan that has a 100 percent chance of losing two of the three cargoes, worth $400,000, or (D) a plan that has a two thirds chance of losing all three cargoes but a onethird chance of losing no cargo. With this framing, most managers choose option D. Because both problems are identical, the decision choice depends strictly on how the problem is framed.

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