Publication
Mar 2010
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 note provides a foundation of prospect theory, where reference-dependence is derived from preference conditions and a unique reference point arises endogenously.
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English (PDF, 0 pages, 269 KB) |
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Author | Ulrich Schmidt, Horst Zank |
Series | Kiel Institute Working Papers |
Issue | 1611 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |