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The Framing of Games and the Psychology of Play

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  • Martin Dufwenberg

    ()
    (University of Arizona)

  • Simon Gaechter

    ()
    (University of Nottingham)

  • Heike Hennig-Schmidt

    ()
    (University of Bonn)

Abstract

Psychological game theory can provide rational-choice-based framing effects; frames influence beliefs, beliefs influence motivations. We explain this theoretically and explore empirical relevance experimentally. In a 2?2 design of one-shot public good games we show that frames affect subject’s first- and second-order beliefs, and contributions. From a psychological gametheoretic framework we derive two mutually compatible hypotheses about guilt aversion and reciprocity under which contributions are related to second- and first-order beliefs, respectively. Our results are consistent with either.

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Bibliographic Info

Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2010-16.

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Date of creation: Sep 2010
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Handle: RePEc:not:notcdx:2010-16

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Web page: http://www.nottingham.ac.uk/economics/cedex/
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Keywords: framing; psychological game theory; guilt aversion; reciprocity; public good games; voluntary cooperation;

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