We explore connections between the certainty equivalent return (CER) functional and theunderlying utility function. Curvature properties of the functional depend upon how utilityfunction attributes relate to Hyperbolic Absolute Risk Aversion (HARA) type utility functions.If the CER functional is...

We study trade patterns in a pure exchange economy where preferences are symmetric up to taste intensity parameters. In a 2-person, 2-good endowment economy, then all endowments in a particular Edgeworth box rectangle require trading out of that rectangle. Under strictly quasi-concave...

We prove the existence of Pareto optimal allocations within sets of acceptableallocations when decision makers have probabilistic sophisticated variational pref-erences dened on random endowments in L1.[...]

A Discrete Choice Experiment (DCE) in the health-care sector is used to test the lossaversion theory that is derived from reference-dependent preferences: The absolutesubjective value of a deviation from a reference point is generally greater when the deviationrepresents a loss than when the...

Experimental and field evidence show that people perceive and evaluate new risks differently from risks that are common. In particular, people get used to the presence of certain risks and become less eager to avoid them. We explain this observation by including risks in the reference states of...

Why should individuals that have exited their firm consider re-entering into entrepreneurship, i.e. become renascent entrepreneurs? According to the logic of economic models of firm dynamics there is no reason to re-enter into entrepreneurship following termination of a previous firm...

Amartya Sen has advanced a number of distinct arguments against utilitarianism and‘utility’-based views more generally. One of these invokes various ways in whichunderdogs can ‘adapt’ and learn to live with their situations. Sen’s argument is related toJon Elster’s discussion of...

In recent economic literature, there has been an increasing interest in modellingpreferences as endogenous. Some arguments go along the lines that institutions shapepreferences. This paper suggests that adopting a more substantive concept ofpreferences furthers our understanding of how they...

This report examines innovation in experiential services. These are serviceswhere the focus is on the experience of the customer when interacting with theorganisation, rather than just the functional benefits following from the productsand services delivered. The report is based on a continuing...