(A, f): Choice with frames

Yuval Salant, Ariel Rubinstein

    Research output: Contribution to journalArticlepeer-review

    Abstract

    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.

    Original languageEnglish (US)
    Pages (from-to)1287-1296
    Number of pages10
    JournalReview of Economic Studies
    Volume75
    Issue number4
    DOIs
    StatePublished - 2008

    ASJC Scopus subject areas

    • Economics and Econometrics

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