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Misconceptions and Game Form Recognition of the BDM Method: Challenges to Theories of Revealed Preference and Framing
| Content Provider | Semantic Scholar |
|---|---|
| Author | Cason, Timothy N. Plott, Charles R. |
| Copyright Year | 2014 |
| Abstract | This study explores the tension between the standard economic theory of preference and non-standard theories of preference that are motivated by an underlying theory of framing. A simple experiment was performed to measure a known preference, the value of a card that can be exchanged for $2 cash. The measurement does not produce the known preference and instead reports a preference that has properties often cited in support of non-standard preference theories and framing. Close examination reveals that the divergence of the measured preference from the known preference reflects a mistake, arising from some subjects’ misconception of the game form. We conclude that choice data should not be granted an unqualified interpretation of preference revelation. Mistakes in choices obscured by a possible error at the foundations of the theory of framing, can masquerade as having been produced by non-standard preferences. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://web.stanford.edu/group/SITE/archive/SITE_2012/2012_segment_5/2012_segment_5_papers/plott.pdf |
| Alternate Webpage(s) | https://krannert.purdue.edu/faculty/cason/papers/miscon_bdm.pdf |
| Alternate Webpage(s) | http://www.hss.caltech.edu/SSPapers/sswp1364.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
