The Revealed Preference Implications of Reference Dependent Preferences

Faruk Gul and Wolfgang Pesendorfer
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Faruk Gul: Princeton University
Wolfgang Pesendorfer: Princeton University

Working Papers from Princeton University. Economics Department.

Abstract: Köszegi and Rabin (2005) propose a theory of reference dependent utility in which the ultimate choice also serves as the reference point. They analyze dynamic choice problems with uncertainty and interpret their model as a description of the individuals psychological process. We focus on static and deterministic choice problems and identify the revealed preference implications of their model.

Keywords: Reference-dependent preferences; choice under risk (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2006-12
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2006-1

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