Information leakage from logically equivalent frames q

Framing effects are said to occur when equivalent frames lead to different choices. However, the equivalence in question has been incompletely conceptualized. In a new normative analysis of framing effects, we complete the conceptualization by introducing the notion of information equivalence. Information equivalence obtains when no choice-relevant inferences can be drawn from the speaker s choice of frame. We show that, to support the normative implications traditionally attributed to framing effects, frames must be equivalent in this sense. We also present new evidence for McKenzie and Nelson s (2003) reference point hypothesis, which posits a tendency to cast descriptions in terms of what has increased relative to the reference point. This leakage of information about relative state violates information equivalence, and gives rise to a normative account of the most robust finding in the attribute framing literature— the valence-consistency of preference shifts. We argue that, more generally, valenced descriptions leak information about perceived valence. Such ‘‘implicit recommendations’’ may 0010-0277/$ see front matter 2005 Elsevier B.V. All rights reserved. doi:10.1016/j.cognition.2005.11.001 q This research was supported by National Science Foundation Grants SES-0079615 and SES-0242049, and a National Science Foundation Graduate Research Fellowship. The authors are grateful to Vic Ferreira and Norbert Schwartz for helpful comments on a previous draft. Some of these results were presented at the 40th Annual Bayesian Research Conference, Los Angeles, CA (2002); 8th Behavioral Decision Research in Management Conference, Chicago, IL (2002); 43rd Annual Meeting of the Psychonomic Society, Kansas City, MO (2002); the 19th Biannual Conference on Subjective Probability, Utility, and Decision Making, Zurich, Switzerland (2003). * Corresponding author. E-mail address: [email protected] (S. Sher). 1 Present address: Psychology Department, Princeton University, Princeton, NJ 08544, USA. 468 S. Sher, C.R.M. McKenzie / Cognition 101 (2006) 467–494 generalize the reference point explanation of the valence-consistent shift. Normative and psychological implications of the information leakage framework are discussed. 2005 Elsevier B.V. All rights reserved.