We study a consumption-investment decision problem related to the past spending maximum. In problem, we consider two crucial consumption levels: lowest constrained level and reference level, both levels are fractions of The decision-maker has different risk aversions on sides level. solve this stochastic control derive semi-explicit forms value function, optimal plan, investment strategy. find ...

Well-established studies in behavioral finance confirm that investors are highly influenced by subjective reference points when making economic decisions. Although the literature examines point formation for individual stocks based on observed price sequences, often treated without considering market context. We extend this incorporating information as background to behavior experiment, and we ...

Reference point effects of top managers exerts an influence on managerial decision-making behaviors. We introduces the main idea of developing the decision behavior testing system designed for top manager in team task circumstance. According to the theory of the reference point effect, study of testing experiments in the reference point effect is carried out. Under managerial decision-making si...