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The Framing of Games and the Psychology of Play

  • Martin Dufwenberg

    ()

  • Simon Gaechter

    ()

  • Heike Hennig-Schmidt

    ()

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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File URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse15_2010.pdf
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Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse15_2010.

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Length: 41
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:bon:bonedp:bgse15_2010
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Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany

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Web page: http://www.bgse.uni-bonn.de

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