- Title
- The Revealed Preference Implications of Reference Dependent Preferences
- Author(s)
- Faruk Gul Faruk Gul (Princeton University)
- Wolfgang Pesendorfer Wolfgang Pesendorfer (Princeton University)
- Abstract
- Köszegi and Rabin (2005) propose a theory of reference dependent utility in which the ultimate choice also serves as the reference point. They analyze dynamic choice problems with uncertainty and interpret their model as a description of the individuals psychological process. We focus on static and deterministic choice problems and identify the revealed preference implications of their model.
- Creation Date
- 2006-12
- Section URL ID
- Paper Number
- 2006-1
- URL
- http://www.princeton.edu/~pesendor/refdep.pdf
- File Function
- Jel
- D81
- Keyword(s)
- Reference-dependent preferences, choice under risk
- Suppress
- false
- Series
- 13