A theory of reference dependent behavior
Ver/
Fecha
2004Versión
Acceso abierto / Sarbide irekia
Tipo
Documento de trabajo / Lan gaiak
Impacto
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nodoi-noplumx
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Resumen
There is extensive field and experimental evidence in a wide variety of environments showing that behavior depends on a reference point. This paper provides an axiomatic characterization for such behavior. Our approach is dual, we study choice behavior and preference relations. We proceed by gradually imposing more structure on behavior, requiring higher levels of rationality, that free the decis ...
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There is extensive field and experimental evidence in a wide variety of environments showing that behavior depends on a reference point. This paper provides an axiomatic characterization for such behavior. Our approach is dual, we study choice behavior and preference relations. We proceed by gradually imposing more structure on behavior, requiring higher levels of rationality, that free the decision-maker from certain types of manipulations. Depending on the phenomena one wants to model, one degree of behavioral structure will be appropriate or another. We provide two applications of the theory: one to model the status-quo bias, and another to model addictive behavior. [--]
Materias
Individual rationality,
Reference-dependence,
Rationalization,
Path-independence,
Menu-independence,
Status-quo bias,
Addiction,
Habit formation
Serie
Documentos de Trabajo DE - ES Lan Gaiak /
0402
Departamento
Universidad Pública de Navarra. Departamento de Economía /
Nafarroako Unibertsitate Publikoa. Ekonomia Saila
Entidades Financiadoras
The authors gratefully acknowledge financial support by the Spanish Commission of Science and Technology (CICYT, SEC2003-08105).