Duraj, Jetlir; He, Kevin - In: Theoretical economics : TE ; an open access journal in … 19 (2024) 3, pp. 1057-1086
commitment case, more loss-averse receivers may enjoy higher news utility in equilibrium. We characterize the family of gradual …A Bayesian agent experiences gain-loss utility each period over changes in belief about future consumption (''news … utility''), with diminishing sensitivity over the magnitude of news. Diminishing sensitivity induces a preference over news …