Showing 1 - 10 of 111
This paper examines the determinants of tax evasion under prospect theory. For prospect theory, reference dependence is a fundamental element (the utility function depends on gains and losses relative to a reference point and not on final wealths as in expected utility theory). In order to...
Persistent link: https://www.econbiz.de/10010933897
, participants in the loss framing group choose to go further in the experiment. There was also a significant and interesting gender … experiment in which they had to perform a task over fifteen stages grouped in three blocks or levels. In order to continue … through the experiment, a minimum level of success was required at the end of each level. Rewards were dependent on the final …
Persistent link: https://www.econbiz.de/10010750819
We investigate the relation between welfare and preference satisfaction in economics, and show that the extension of … the scope of economic analysis through the 20th century forces economists to question the validity of the preference … welfare -- it becomes necessary to establish a clear distinction between preference and welfare, and to integrate the …
Persistent link: https://www.econbiz.de/10010633780
In an often quoted article, Genesove and Mayer (2001) observe that house sellers are reluctant to sell at a loss, and attribute this finding to loss aversion. I show that loss aversion cannot explain this phenomenon.
Persistent link: https://www.econbiz.de/10010635268
I show that a loss averse consumer who must share her budget between two goods prefer allocations for which consumption equals reference point for at least one good. The phenomenon intensity depends on the curvature of the utility curve. These results are consistent with several stylized facts...
Persistent link: https://www.econbiz.de/10011026068
We study the impact of information manipulation by a principal on the agent's effort. In a context of asymmetric information at the principal's advantage, we test experimentally the principal's willingness to bias (overestimate or under-estimate) the information she gives to her agent on his...
Persistent link: https://www.econbiz.de/10008790485
the micro'demands of the psychological preference theory with the standard macro'ones. Finally, we show that polycentered … models seem to be the only framework within which individual psychological preference is an appropriate tool to study the …
Persistent link: https://www.econbiz.de/10010930212
the micro'demands of the psychological preference theory with the standard macro'ones. Finally, we show that polycentered … models seem to be the only framework within which individual psychological preference is an appropriate tool to study the …
Persistent link: https://www.econbiz.de/10009325726
preference, while the constructive approach aims at building preferences by questioning the decision maker. We show that these …
Persistent link: https://www.econbiz.de/10010738479
This paper presents the different utilitarian approaches to ethics. It stresses the influence of utilitarianism in economics in general and in welfare economics in particular. The key idea of the paper to explain the evolution from classical utilitarianism to preferences utilitarianism and...
Persistent link: https://www.econbiz.de/10010821180