Reference-dependent utility with shifting reference points and incomplete preferences

被引:24
作者
Bleichrodt, Han [1 ]
机构
[1] Erasmus Univ, Dept Econ, NL-3000 DR Rotterdam, Netherlands
关键词
reference-dependence; incompleteness; additive utility; tradeoff consistency; prospect theory; CUMULATIVE PROSPECT-THEORY; SUBJECTIVE EXPECTED UTILITY; PARAMETER-FREE ELICITATION; COMPLETENESS AXIOM; NONEXPECTED UTILITY; LOSS AVERSION; CHOICE; PROBABILITY; DECISION; REPRESENTATION;
D O I
10.1016/j.jmp.2007.04.003
中图分类号
O1 [数学];
学科分类号
0701 ; 070101 ;
摘要
Many empirical studies have shown that people's preferences are reference-dependent. Previous theoretical studies of reference-dependence assumed that the reference point was fixed and then imposed the usual assumptions of decision theory, in particular completeness of preferences. This paper gives preference foundations for additive reference-dependent utility when the reference point varies across decisions and is one of the options in the decision maker's opportunity set. This decision situation is common, for example because usually the retention of the status quo is an available option, but is difficult to handle axiomatically because it implies incompleteness of preferences. The results of this paper provide tools to extend existing theories of reference-dependent preferences, such as prospect theory, to new and empirically important decision contexts. (c) 2007 Elsevier Inc. All rights reserved.
引用
收藏
页码:266 / 276
页数:11
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