Abstract
The aim of this study is to investigate the framing effects in approval making. In contrast to choice making in which an agent maximizes the utility, approval is binary classification behaviour in which an agent `approves' the items that are (weakly) preferred to the threshold. The frame is observable information that is irrelevant in the rational assessment over the items but affects approval decisions. We provide framework to study deterministic and stochastic approval with frames. The models are characterized based on axioms which are similar in spirit to Samuelson's WARP. We illustrate how one can deduce both the decision maker’s preference and the threshold from the observed behaviour.
Original language | English |
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Article number | 102788 |
Journal | Journal of Mathematical Economics |
Volume | 103 |
Early online date | 12 Nov 2022 |
DOIs | |
Publication status | Published - 31 Dec 2022 |
Bibliographical note
Royal Economic Society COVID Academic Support Fund.Funding Information:
I am grateful to Associate Editor Juan Dubra and two anonymous referees for their constructive and insightful comments which greatly improved the paper. I am deeply indebted to Paola Manzini, and Pawel Dziewulski for their advice, support, and encouragement. I would also like to thank Gabriel Ziegler, Christopher Stapenhurst, Valentino Dardanoni, Paul Telemo, Matthew Embrey, Tom Potoms, Matthew Ryan, John Rehbeck, Genyu Wang for helpful suggestions. Financial support from Royal Economic Society, United Kingdom COVID Academic Support fund is gratefully acknowledged.
Keywords
- Approval behaviour
- Framing effect
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics