Prospect Theory and consumer behavior: Goals and Tradeoffs

Florent Buisson

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: 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 which cannot be explained by the standard consumer theory.

Keywords: Loss aversion; prospect theory; Aversion pour la perte; théorie des perspectives (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-cbe, nep-mic and nep-upt
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Published in 2013

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Related works:
Working Paper: Prospect Theory and consumer behavior: Goals and Tradeoffs (2013)
Working Paper: Prospect Theory and consumer behavior: Goals and Tradeoffs (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00820722

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