Endogenous Prospect Theory

Conference object, Preprint English OPEN
Schmidt, Ulrich; Zank, Horst;
  • 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
      ddc: ddc:330

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
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