Publisher: Verein für Socialpolitik Frankfurt a. M.
Subject: prospect theory | diminishing sensitivity | prospect theory,reference point,diminishing sensitivity,loss aversion | reference point | loss aversion | C91 | D81 | D80
jel: jel:D80 | jel:C91 | jel:D81
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, te... View more