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The Framing of Games and the Psychology of Play

  • Martin Dufwenberg

    ()

    (University of Arizona)

  • Simon Gaechter

    ()

    (University of Nottingham)

  • Heike Hennig-Schmidt

    ()

    (University of Bonn)

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.nottingham.ac.uk/cedex/documents/papers/2010-16.pdf
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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:cdx:dpaper:2010-16
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