Journal Article

(<i>A</i>, <i>f</i>): Choice with Frames

Yuval Salant and Ariel Rubinstein

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 75, issue 4, pages 1287-1296
Published in print October 2008 | ISSN: 0034-6527
Published online October 2008 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/j.1467-937X.2008.00510.x
(A, f): Choice with Frames

More Like This

Show all results sharing this subject:

  • Information, Knowledge, and Uncertainy

GO

Show Summary Details

Preview

We develop a framework for modelling choice in the presence of framing effects. An extended choice function assigns a chosen element to every pair (A, f) where A is a set of alternatives, and f is a frame. A frame includes observable information that is irrelevant in the rational assessment of the alternatives, but nonetheless affects choice. We relate the new framework to the classical model of choice correspondence. Conditions are identified under which there exists either a transitive or a transitive and complete binary relation R such that an alternative x is chosen in some (A, f) iff x is R-maximal in the set A. We then demonstrate that the framework of choice correspondence misses information, which is essential to economic modelling, and which is incorporated in the extended choice function.

Keywords: D82; D83

Journal Article.  5551 words.  Illustrated.

Subjects: Information, Knowledge, and Uncertainy

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.