منابع مشابه
Dynamic Consistency and Reference Points
This note provides a positive answer to the following question. Is it possible to define a set of preference relations, one for each node of a decision tree, such that these preferences satisfy the reduction of compound lotteries axiom and dynamic consistency, and yet do not converge to expected utility? It is argued that updated preferences necessarily have one affine indifference curve but th...
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In evolutionary multiobjective optimization, hypervolume indicator is one of the most commonly-used performance metrics. To reduce its high computational costs in many objective optimization, Monte Carlo method is used in HypE (Hypervolume Estimation algorithm for multi-objective optimization) for approximating hypervolume values. However, the diversity preservation of HypE can be poor under in...
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Decision makers often save money for a specific goal by forgoing discretionary consumption and instead putting the money toward the savings goal. We hypothesized that reference points can be exploited to enhance this type of saving. In two hypothetical scenario studies, subjects made judgments of their likelihood to forgo a small expenditure in order to put the money toward the savings goal. In...
متن کاملNoncontractible Investments and Reference Points
We analyze noncontractible investments in a model with shading. A seller can make an investment that affects a buyer’s value. The parties have outside options that depend on asset ownership. When shading is not possible and there is no contract renegotiation, an optimum can be achieved by giving the seller the right to make a take-it-or-leave-it offer. However, with shading, such a contract cre...
متن کاملBeliefs and Dynamic Consistency,
In this chapter, we adopt the decision theoretic approach to the representation and updating of beliefs. The standard bayesian approach, as developed by Savage (1954), provides the conditions under which a decision maker whose preferences satisfy a certain number of “rationality” axioms (among which the famous “sure thing principle”) must have probabilistic beliefs. Thus, under these axioms, an...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 1997
ISSN: 0022-0531
DOI: 10.1006/jeth.1996.2204