Dufwenberg, Martin Gächter, Simon Henning-Schmidt, Heike
Year of Publication:
Bonn Econ Discussion Papers No. 15/2008
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.
Framing psychological games guilt aversion reciprocity public good games voluntary cooperation