Revealed Preference Analysis with Framing Effects / Jacob Goldin, Daniel Reck.

Format:

Book

Author/Creator:

Goldin, Jacob.

Contributor:

National Bureau of Economic Research.

Reck, Daniel.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25139.

NBER working paper series no. w25139

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

In many settings, decision-makers' behavior is observed to vary based on seemingly arbitrary factors. Such framing effects cast doubt on the welfare conclusions drawn from revealed preference analysis. We relax the assumptions underlying that approach to accommodate settings in which framing effects are present. Plausible restrictions of varying strength permit either partial- or point-identification of preferences for the decision-makers who choose consistently across frames. Recovering population preferences requires understanding the empirical relationship between decision-makers' preferences and their sensitivity to the frame. We develop tools for studying this relationship and illustrate them with data on automatic enrollment into pension plans.

Notes:

Print version record

October 2018.