Chauveau, Thierry; Nalpas, Nicolas - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2010
In this paper, a fully choice-based theory of disappointment is developed. It encompasses, as particular cases, EU … theory, Gul's theory of disappointment (1991) and the models of Loomes and Sugden (1986). According to the new theory, the …-Pratt premium and a second premium that may be identified to expected disappointment. The corresponding representing functional …