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The Framing of Games and the Psychology of Play

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  • Dufwenberg, Martin
  • Gächter, Simon
  • Henning-Schmidt, Heike

Abstract

Psychological game theory can help provide a rational choice explanation of framing effects; frames influence beliefs, beliefs influence motivations. We explain this theoretically, and explore the 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 game-theoretic 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.

Suggested Citation

  • Dufwenberg, Martin & Gächter, Simon & Henning-Schmidt, Heike, 2008. "The Framing of Games and the Psychology of Play," Bonn Econ Discussion Papers 15/2008, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:152008
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    More about this item

    Keywords

    Framing; psychological games; guilt aversion; reciprocity; public good games; voluntary cooperation;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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