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All Frames Created Equal are Not Identical: On the Structure of Kahneman and Tversky's Framing Effects

Author

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  • Dorian Jullien

    (University of Nice Sophia Antipolis
    GREDEG CNRS)

Abstract

This paper revisits Daniel Kahneman and Amos Tversky's work on 'framing'. It shows how various conventions from economic theory allow the establishment of different equivalence relations between pairs of problems in framing experiments. Then, an exegesis of their comments on these experiments is conducted regarding the relation between their theoretical explanation through prospect theory and the positive/normative distinction in models of individual behaviors. Throughout, a methodological framework with a distinction between identity, equivalence and equality (borrowed to philosopher Craig Dilworth) is developed for a critical analysis of the relation between external frames (the empirical structure of a decision problem) and internal frames (the psychological representation of the decision problem by decision makers).

Suggested Citation

  • Dorian Jullien, 2016. "All Frames Created Equal are Not Identical: On the Structure of Kahneman and Tversky's Framing Effects," GREDEG Working Papers 2016-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2016-17
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    File URL: http://195.220.190.85/GREDEG-WP-2016-17.pdf
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    References listed on IDEAS

    as
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    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Dietrich, Franz & List, Christian, 2009. "A reason-based theory of rational choice," MPRA Paper 36112, University Library of Munich, Germany, revised 2011.
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    11. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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    13. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 2002. "Framing decisions: Hypothetical and real," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1162-1175, November.
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    21. van Buiten, Marc & Keren, Gideon, 2009. "Speaker-listener incompatibility: Joint and separate processing in risky choice framing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(1), pages 106-115, January.
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    Cited by:

    1. Dorian Jullien, 2016. "Under Uncertainty, Over Time and Regarding Other People: Rationality in 3D," GREDEG Working Papers 2016-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Guilhem Lecouteux & Ivan Mitrouchev, 2021. "The "View from Manywhere": Normative Economics with Context-Dependent Preferences," GREDEG Working Papers 2021-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    3. Diego Lanzi, 2018. "On Embedded Choice Theory: Re-framing and Emotions," Review of Economics & Finance, Better Advances Press, Canada, vol. 11, pages 19-30, February.
    4. Guilhem Lecouteux & Ivan Mitrouchev, 2023. "The view from Manywhere : normative economics with context-dependent preferences," Post-Print hal-04551021, HAL.
    5. Michal Ovádek, 2019. "The apolitical lawyer: experimental evidence of a framing effect," European Journal of Law and Economics, Springer, vol. 48(3), pages 385-415, December.
    6. Kuehnhanss, Colin R. & Heyndels, Bruno, 2018. "All’s fair in taxation: A framing experiment with local politicians," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 26-40.

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    More about this item

    Keywords

    Framing; description invariance; extensionality; consequentialism; prospect theory; behavioral economics; Kahneman and Tversky;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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