Årets første stabsseminar

Fredag 16. januar holder Institutt for foretaksøkonomi årets første stabsseminar. Seminaret er ved Jacob Sagi, UC Berkeley, og temaet er Anchored Preference Relations.

15.01.2004 - Stig Nøra

Tid: Fredag 16.januar klokken 12.15-13.45

Sted: Karl Borchs auditorium

Abstract

This paper explores the implications of a simple and intuitive
restriction on reference dependent preferences assuming the status quo
serves as the reference point. The condition imposed rules out
situations in which a decision maker has a choice between two prospects,
selects one, subsequently changes her mind and selects the other - even
if the change is costly. It is shown that a surprising number of models
in a riskless and risky setting violate this behavioral assumption,
including Cumulative Prospect Theory as well as any theory exhibiting
local nonsatiation in which all reference dependent indifference
surfaces are smooth. It is also shown that one can construct simple
alternative models that do satisfy the condition, axiomatically derived
or otherwise. These alternative theories take the form of maxmin
representations over a set of expected (or Choquet-expected) utility
differences, where utility difference is measured between the prospect
evaluated and the reference point.

Paper er tilgjengelig på http://faculty.haas.berkeley.edu/sagi/apr_v91.pdf

Jørgen Haug (59426) Jarle Møen (59612)