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Description-dependent preferences

Author

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  • Dino Borie

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Dorian Jullien

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dino Borie & Dorian Jullien, 2020. "Description-dependent preferences," Post-Print hal-03233884, HAL.
    • Handle: RePEc:hal:journl:hal-03233884
    DOI: 10.1016/j.joep.2020.102311
    Note: View the original document on HAL open archive server: https://hal.science/hal-03233884
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    Cited by:

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    3. Ferro, Giuseppe M. & Kovalenko, Tatyana & Sornette, Didier, 2021. "Quantum decision theory augments rank-dependent expected utility and Cumulative Prospect Theory," Journal of Economic Psychology, Elsevier, vol. 86(C).

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    More about this item

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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