Final answer:
The board's shift in preference from a risk-seeking alternative to a risk-averse one based on the presentation of options demonstrates the influence of the framing bias, where decisions are swayed by how information is communicated.
Step-by-step explanation:
When the research team presented alternatives in terms of a chance for losses, the board chose the risk-seeking alternative, but when the team presented the alternatives in terms of opportunities for gain in the following meeting, the board switched to the risk-averse alternative. This shift in decision-making based on how the choices are presented is known as the framing effect, which falls under the category of cognitive biases that influence how people perceive risks and benefits.
The framing effect is particularly relevant in fields like behavioral finance and decision-making, where it's important to understand that the way information is presented can significantly alter an individual's or group's choices. Considering this, the board had succumbed to the framing bias as indicated by their contrasting choices when faced with the same decision but presented differently in terms of potential losses or gains.
This demonstrates how cognitive biases can lead to inconsistent decision-making and highlights the importance of being aware of such biases when evaluating choices to make more rational and consistent decisions.