What does framing in decision-making psychology influence?

Framing in decision-making psychology significantly influences how individuals interpret and respond to information based on its presentation. This phenomenon explains that the way questions or information are worded can shape people's perceptions and ultimately their choices. For example, presenting the same scenario in terms of potential gains versus potential losses can lead to different decision-making behaviors, even when the underlying facts remain constant. This emphasizes the role of cognitive biases in human judgment, particularly how the framing of information can skew perceptions and reactions.

In this context, while the other options relate to aspects of psychology and finance, they focus on broader implications rather than the core influence of wording. Financial forecasts, risk perception, and economic models are all shaped by various factors, but it's the specific wording used in questions or statements that highlights the essence of framing.