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Misconceptions and Game Form Recognition: Challenges to Theories of Revealed Preference and Framing

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  • Timothy N. Cason
  • Charles R. Plott

Abstract

This study explores the tension between the standard economic theory of preference and nonstandard theories of preference that are motivated by an underlying theory of framing. A simple experiment fails to measure a known preference. The divergence of the measured preference from the known preference reflects a mistake, arising from some subjects' misconception of the game form. We conclude that choice data should not be granted an unqualified interpretation of preference revelation. Mistakes in choices obscured by a possible error at the foundation of the theory of framing can masquerade as having been produced by nonstandard preferences.

Suggested Citation

  • Timothy N. Cason & Charles R. Plott, 2014. "Misconceptions and Game Form Recognition: Challenges to Theories of Revealed Preference and Framing," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1235-1270.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/677254
    DOI: 10.1086/677254
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