EXPECTATIONS-BASED REFERENCE-DEPENDENCE AND CHOICE UNDER RISK

• 成果类型: Article
• 署名作者: Freeman, David J.
• 署名单位: Simon Fraser University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12639
• 发表日期: 2019
• 页码: 2424-2458
• 关键词: Loss aversion; rational choice; regret theory; disappointment; preferences; consumers; DECISION; MODEL

摘要

This article characterises the behavioural content of a model of choice under risk with reference-dependent preferences and endogenous expectations-based reference points based on the preferred personal equilibrium model of Koszegi and Rabin (2006). The combination of reference-dependent preferences and endogenous reference points leads to violations of the Independence Axiom and can also lead to violations of the Weak Axiom of Revealed Preference. An axiomatic characterisation shows that the model places testable restrictions on choice under risk.