Description-dependent preferences

Dino Borie and Dorian Jullien

Journal of Economic Psychology, 2020, vol. 81, issue C

Abstract: We propose a theoretical perspective on framing effects where decision makers violate the axiom of description invariance. We first propose a framework that makes this axiom explicit and then we weaken it to allow for description dependence. This framework provides a structure to disentangle different violations of description invariance. We then identify a particular class of violations that we call tidy description-dependent preferences, which are compatible with a transitive preference relation over the consequences of the choice set. We show that many violations observed in the literature are actually in this class.

Keywords: Description invariance; Framing effect; Description dependence; Decision theory (search for similar items in EconPapers)
JEL-codes: D01 D03 D80 D81 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:81:y:2020:i:c:s0167487020300726

DOI: 10.1016/j.joep.2020.102311

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