# Framing Effect

*Behavioral Finance — Finicade finance glossary*

The framing effect is choosing differently depending on how identical options are described. A treatment with 90% survival is chosen far more often than one with 10% mortality. In finance it's everywhere: a fund's fee shown as 1% rather than as a share of expected return, a loss framed as a discount to a peak rather than as capital destroyed.

**Also known as:** framing, presentation bias

**Related terms:** [Prospect Theory](https://finicade.com/glossary/prospect-theory), [Mental Accounting](https://finicade.com/glossary/mental-accounting), [Nudge](https://finicade.com/glossary/nudge), [Anchoring](https://finicade.com/glossary/anchoring), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases)

**Taught in:** Mind Over Markets — Prospect Theory Exam

Source: https://finicade.com/glossary/framing-effect