UTILITY: THE VALUE FUNCTION AND FRAMING EFFECTS: When the Same Outcome Feels Different, Depending on How We Arrive There

We do not live inside equations.

We live inside experience.


And what something is

often matters less

than how it is framed.


We value.

We compare.

We decide.


But quietly—without knowing—

the way a choice is presented

can reshape the meaning it holds.


A gain can feel like a loss.

A loss can feel like relief.

A safe choice can feel risky

if the story around it shifts.


This is where the value function and framing effects meet:

in the delicate space between number and meaning,

between structure and story,

between fact and feeling.





The Value Function: Uneven Minds, Honest Reactions



We like to believe

that more value equals more happiness,

that more loss equals more pain—

in neat, proportional lines.


But the value function, as shown in prospect theory,

draws a different curve.


  • We feel losses more sharply than gains.
  • The further we move from a reference point,
    the less we feel each additional unit of change.
  • Gains bring joy—brief, soft.
    Losses bring pain—immediate, sharp, consuming.



The curve is not straight.

It is steeper for loss,

flatter for gain.

And always,

anchored to where we believe we began.





Framing: The Story That Shapes the Curve



But the story matters, too.

This is the power of framing.


Offer the same outcome,

described in different ways—

and you will watch the choice shift.


  • “90% success” feels safe.
  • “10% failure” feels alarming.
    Though both are true,
    only one soothes.



Frame a surgery in terms of survival,

and people agree.

Frame it in terms of death,

and people hesitate.


The difference is not in the numbers—

but in the emotional world

those numbers are invited to enter.





We Choose Feelings, Not Just Facts



The value function and framing effects reveal this:

we don’t simply choose what is better.

We choose what feels better,

what feels safer,

what feels more certain,

less painful,

more aligned with our imagined selves.


We don’t just react to outcomes—

we react to stories.

To tone.

To context.

To the invisible frame that surrounds the truth.


And when that frame changes,

so do we.





Why This Matters



We make decisions every day:

financial, emotional, relational.

And we believe we are choosing based on fact.

But fact is never naked.

It is always clothed

in presentation.


To think clearly,

we must begin to ask:


  • What is the reference point I’m measuring from?
  • How is this outcome being framed?
  • Would I feel differently if the exact same result were presented another way?



Because clarity does not only come from knowing the data—

it comes from understanding

how that data is made to feel.





A Closing Reflection



If you are facing a decision,

and the choice seems obvious,

or strangely emotional—

pause.


Ask:


  • Am I responding to the outcome,
    or the frame?
  • Is this gain real,
    or does it only feel good because of how it’s described?
  • Is this loss truly painful,
    or does it only feel that way
    because of what I expected instead?



Because the frame is not the thing.

But it becomes the thing

when we don’t notice it.




And in the end, the value function and framing effects remind us

that utility is not objective.

It is felt.

It is shaped by memory, comparison, and context.

And the wisest choice

is not always the one that feels best in the moment—

but the one we would still choose

if we stripped away the story,

and saw the truth beneath it.