Gain and loss is all down to perception, as as a person who may perceive something entirely different than another individual may e.g a glass being half empty or a glass being half full. depending on how it is looked at will depend if a person takes it as a loss or a gain. According to the prospect theory out outcomes are experienced as gains or loss according the the individuals subjective reference point.
Subject value is said to be a concave function of utility and a steeper function in the domain of loss's.
Framing is said what can alter an individuals choice making decision, as framing is controlled by the formulation of the problem and partly by the individuals character as well as there habits likes and dislikes.
The effects of framing are mainly assessed by using two different types of criteria intergroup difference criterion and reference distribution Intergroup examines if there's a difference between the two relevant framing conditions. With reference distribution here it is required that the difference between framing is looked at and analysed .
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