A Note on Reference-Dependent Choice with Threshold Representation

Dan Qin

Research output: Contribution to journalArticle

Abstract

This note considers reference-dependent choice procedures shaped by a utility function and a threshold function. Alternatives are considered only when the utility gain of moving from the reference is bigger than the threshold. We impose no requirement on the threshold functions whereas previous works characterize the special case of strictly positive threshold functions. We also examine the case when the threshold function depends on both compared alternatives.

Original languageEnglish
Article number20180142
JournalB.E. Journal of Theoretical Economics
Volume20
Issue number1
DOIs
Publication statusPublished - 2020 Jan 1

Keywords

  • endowment effect
  • reference-dependent choice
  • threshold function

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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