A revealed reference point for prospect theory
نویسندگان
چکیده
منابع مشابه
Great expectations: Prospect theory with a consistent reference point
I apply a prospect theory model of risk preferences with an endogenously determined reference point to propose an alternative objective of maximizing expected outcome rather than maximizing expected utility. I show that an agent can always form a consistent expected outcome for any binary gamble and derive a parametric formula, which can then be used to examine the effects of loss aversion, ris...
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This paper develops axiomatically a revealed preference theory of reference-dependent choice behavior. Instead of taking the reference for an agent as exogenously given in the description of a choice problem, we suitably relax the Weak Axiom of Revealed Preference to obtain, endogenously, the existence of reference alternatives as well as the structure of choice behavior conditional on those al...
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ژورنال
عنوان ژورنال: Economic Theory
سال: 2018
ISSN: 0938-2259,1432-0479
DOI: 10.1007/s00199-017-1096-2