Listing Specs: The Effect of Framing Attributes on Choice

Abstract

Consistent evidence across important domains shows that people’s decisions can depend on the order or emphasis with which the attributes of the available options are presented to them. We introduce the first model of such framing effects, which we characterize in terms of observable behavior. We apply the model to study how the strategic use of attribute framing affects the outcomes of negotiations and competition in markets. We extend the model to stochastic-choice frameworks, which are often used in practice.