Decisions with Endogenous Frames
CentER Discussion Paper Series No. 2010-142
19 Pages Posted: 18 Jan 2011
Date Written: November 30, 2010
This paper contrasts the normative implications of a model of decision-making with endogenous frames to those of choice theoretic models of Bernheim and Rangel (2007, 2009) and Rubinstein and Salant (2008) in which observed choices are determined by exogenous frames or ancillary conditions. We argue that frames, though exogenous to the individual at the point when choices are made, matter for welfare purposes.
Keywords: Decisions, Choice, Frames, Standard, Behavioral, Welfare
JEL Classification: D01, D62, C61, I30
Suggested Citation: Suggested Citation