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A reputational perspective on rational framing effects
1Kellogg School of Management, Northwestern University, Evanston, IL 60208, USA charles.dorison@kellogg.northwestern.educharlesdorison.com.
Abstract:
To assess whether behaviors like framing effects are rational, researchers need to consider decision makers' goals. I argue that researchers should broaden the scope of analysis to include impression management goals. Under predictable conditions, behaviors traditionally considered irrational (e.g., loss-gain framing effects on risk preferences) can be reputationally rewarding, casting doubt on strict claims of irrationality.
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