Anchored preference relations

• 成果类型: Article
• 署名作者: Sagi, Jacob S.
• 署名单位: University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2005.01.009
• 发表日期: 2006
• 页码: 283-295
• 关键词: non-expected utility; reference dependence; cumulative prospect theory; decision theory; utility representation; Anchoring; status quo bias; endowment effect

摘要

This note explores the implications of a simple and intuitive restriction on reference-dependent preferences assuming the status quo serves as the reference point. The condition imposed potentially rules out situations in which a decision maker has a choice between two prospects, selects one which subsequently becomes the new reference point, and then regrets her initial choice. It is shown that a surprising number of models in a riskless and risky setting violate this behavioral assumption, including Cumulative Prospect Theory as well as any theory exhibiting local non-satiation in which all reference-dependent indifference surfaces are smooth. It is also shown that the condition does admit a class of non-trivial reference-dependent preferences. (c) 2005 Elsevier Inc. All rights reserved.