Work

Prospect Theory with Reference Points in the Opportunity Set

Year: 2006

Type: report

Abstract: Many empirical studies have shown that preferences are reference-dependent, implying loss aversion.\nBecause reference-dependence is a relatively new concept, there exists little theory on it. The theories that\nare available generally take the reference point as given and then impose the traditional assumptions such\nas completeness of preferences. Reference-dependence raises, however, new problems that do not occur in\nreference-independent theories. This paper argues that in the empirically realistic case

Source: RePub (Erasmus University Rotterdam)

Author: Han Bleichrodt

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

Funder: Nederlandse Organisatie voor Wetenschappelijk Onderzoek

OpenAlex ID: W1594307305

Cites: 59

Cited by: 3

Related to: 10