Describe the concept of narrow framing in Prospect Theory.

Describe the concept of narrow framing in Prospect Theory.

Narrow framing in Prospect Theory refers to the tendency of individuals to make decisions based on isolated events or situations, rather than considering the broader context or long-term consequences. It involves focusing on a specific aspect of a decision or outcome, rather than taking into account the overall picture. This limited perspective can lead to biased decision-making, as individuals may overlook important information or fail to consider the potential risks and benefits associated with their choices. Narrow framing can result in suboptimal decisions and can be influenced by factors such as emotions, cognitive biases, and the way choices are presented.