What is the essence of influence? How do some people nudge, cajole and charm others towards their predetermined goals? Some people say that there exists an art of influence but could there be a science behind it? Can science inform us how to nudge people? Is there a science of framing issues that make others do what you want them to do?
The Science of Framing Issues
In this podcast episode, I explore the literature on behavioral decision theory to understand whether presenting information in some ways can influence people? The discussion in the episode reveals that we are susceptible to such influence and we can influence others too.
Two Key Research Topics on Framing Issues
I explore two critical research veins in behavioral decision theory to understand whether a presentation of data in some ways influences others. The first research literature covers heuristics and biases which tell us that we are susceptible to a biased decision making. The second research focuses on probabilistic reasoning. In that, I focus entirely on the prospect theory by Kahneman and Tversky.
The Dark Side of Innovation
In the research for my book The Dark Side of Innovation, I relied heavily on prospect theory to show a connection between behavioral decision theory and innovation behavior of firms. I demonstrated that prospect theory is a plausible explanation for how companies behave in the face of profit-destroying innovations. In the podcast, I share how the same approach applies to marketing, consumer behavior, and even in making people save more for retirement.
Key Take Aways
The key takeaways from this episode are as follow:
- How you present information can change how people perceive a situation?
- What role does initial information play in biasing a decision maker?
- How does behavioral decision theory research help us in understanding the science of framing issue.
- What implications does this research have for business?
- How can you use this research to influence others?
- Chopra, A. (2013). The Dark Side of Innovation, 206. Retrieved from http://www.amazon.com/Dark-Side-Innovation-Ankush-Chopra/dp/1938406214
- Chopra, A., & Baldegger, R. (2015). Deer in the Headlights: Response of Incumbent Firms to Profit Destroying Innovations. International Journal of Innovation in Management.
- Tversky, A., & Kahneman, D. (1979). Prospect Theory – Analysis of Decision under Risk, 47(2), 263–291. Retrieved from <Go to ISI>://A1979GR75700001
- Tversky, A., & Kahneman, D. (1982). Judgment under uncertainty: heuristics and biases. Judgment Under Uncertainty: Heuristics and Biases, xiii–555.\
- Tversky, A., & Kahneman, D. (1992). Advances in Prospect-Theory – Cumulative Representation of Uncertainty. Journal of Risk and Uncertainty, 5(4), 297–323. Retrieved from <Go to ISI>://A1992JV04500001
- Camerer, C. E. (2000). Prospect theory in the wild. Evidence from the field. Choices, Values, and Frames, xx–840.
How to Listen?
Interested in listening to this episode? You can find this episode as well as tons of equally insightful lessons on business management in my flagship program The Business Leadership Academy. It is dedicated to helping you become a highly effective business leaders. Check it out now.