TY - JOUR
T1 - (A, f)
T2 - Choice with frames
AU - Salant, Yuval
AU - Rubinstein, Ariel
PY - 2008
Y1 - 2008
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=51749121511&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=51749121511&partnerID=8YFLogxK
U2 - 10.1111/j.1467-937X.2008.00510.x
DO - 10.1111/j.1467-937X.2008.00510.x
M3 - Article
AN - SCOPUS:51749121511
SN - 0034-6527
VL - 75
SP - 1287
EP - 1296
JO - Review of Economic Studies
JF - Review of Economic Studies
IS - 4
ER -