Expectations-Based Reference-Dependence and Choice Under Risk

A-Tier
Journal: Economic Journal
Year: 2019
Volume: 129
Issue: 622
Pages: 2424-2458

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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 Kőszegi 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.

Technical Details

RePEc Handle
repec:oup:econjl:v:129:y:2019:i:622:p:2424-2458.
Journal Field
General
Author Count
1
Added to Database
2026-01-25