Zou, Liang - In: Annals of Economics and Finance 7 (2006) 1, pp. 1-28
This paper presents a new approach to decision-making under risk. Preference over risky prospects is defined as a triadic reference-dependent relation in a sense similar to Sugden (2003). Characterized by a set of von Neumann-Morgenstern-style axioms, a new reference-dependent representation...