Editing Anchoring and Framing (section)

== <span style="color: #FFFFFF;">Understanding</span> ==
Anchoring and Framing are understood through '''Mental Comparison''' and '''Emotional Valuation'''.

'''1. Anchoring (The Starting Line)''':
When you need to estimate a value, your brain looks for a starting point.
* Even if the starting point is completely random (like a spinning wheel), your final estimate will "Stick" close to it.
* '''Example''': If a clothing store shows a "Retail Price" of $100 but offers it for $40, the $100 is the anchor. Even if the shirt is only worth $10, the $40 feels like a "Deal" because of the anchor.

'''2. Framing (The Perspective)''':
How a question is "Framed" changes your emotional response.
* We are '''Risk-Averse''' for gains (we take the sure thing).
* We are '''Risk-Seeking''' for losses (we gamble to avoid a loss).
* '''Example''': Patients are more likely to agree to a surgery if told there is a "95% survival rate" than if told there is a "5% death rate"—even though the numbers are identical.

'''3. Why They Work''':
* '''Insufficient Adjustment''': Once we have an anchor, we "Adjust" away from it, but we usually stop too soon.
* '''Narrow Thinking''': Framing forces us to look at only one "Window" of a problem, ignoring the bigger context.

'''The 20-Cent Game''': If you give people $50 and tell them they can "Keep $20" or "Lose $30," they will behave differently. People who "Keep" are cautious; people who "Lose" are angry and take risks to get their money back.
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