stylized facts of prospect theory like loss aversion, status quo bias and non-linear probability weighting. Locally limited … optimal consumption will produce a value function that obeys the loss aversion axiom of Tversky and Kahneman (1991). Moreover …

price. If consumers are additionally sufficiently `loss averse', e.g. consumers' disappointment from higher than suggested … dependence, loss aversion …

price. If consumers are additionally sufficiently `loss averse', e.g. consumers' disappointment from higher than suggested … dependence, loss aversion …

report empirical evidence of loss aversion: When a consumer encounters a price above his or her established reference point … (a “loss”), the response is greater than for a price below the reference point (a “gain”). Researchers have gone so far ….g., Kalyanaram and Winer 1995, Meyer and Johnson 1995). It is our contention that the measurement of loss aversion in empirical …

reference point for future consumption. The model incorporates the combination of loss aversion and anticipatory utility as …) and Kreps and Porteus (1978) can be reinterpreted in terms of optimal anticipation and loss aversion. Finally, I describe …

to a reference point) are a better predictor of behavior than expected utility. In particular, loss aversion is an … important element of such utility functions. <p> We extend games to include loss aversion characteristics of the players. We … define two types of loss-aversion equilibrium, a solution concept endogenizing reference points. The two types reflect …

price. If consumers are additionally sufficiently ‘loss averse’, e.g. consumers’ disappointment from higher than suggested …