Work

Endogenous Prospect Theory

Year: 2010

Type: preprint

Abstract: In previous models of (cumulative) prospect theory reference-dependence of preferences is imposed beforehand and the location of the reference point is exogenously determined. This paper provides an axiomatization of a new specification of cumulative prospect theory, termed endogenous prospect theory, where reference-dependence is derived from preference conditions and a unique reference point arises endogenously.

Source: RePEc: Research Papers in Economics

Authors: Ulrich Schmidt, Horst Zank

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1519567427

Cites:

Cited by: 1

Related to: 10