Preferences with frames: A new utility specification that allows for the framing of risks

DOI10.1016/j.jedc.2009.01.009zbMath1170.91318OpenAlexW3121215239MaRDI QIDQ2270552

Ming Huang, Nicholas Barberis

Publication date: 28 July 2009

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2009.01.009

zbMATH Keywords

equity premiumdiversificationstock market participationframing

Mathematics Subject Classification ID

Probabilistic games; gambling (91A60)

Related Items (13)

Asset pricing with loss aversion ⋮ S-shaped narrow framing, skewness and the demand for insurance ⋮ Equilibrium asset pricing with Epstein-Zin and loss-averse investors ⋮ Discrete-time behavioral portfolio selection under cumulative prospect theory ⋮ Optimal insurance design under mean-variance preference with narrow framing ⋮ Loss aversion, survival and asset prices ⋮ Loss aversion with multiple investment goals ⋮ Risk-neutral firms can extract unbounded profits from consumers with prospect theory preferences ⋮ Dynamic portfolio choice and asset pricing with narrow framing and probability weighting ⋮ Existence of solutions in non-convex dynamic programming and optimal investment ⋮ A new preference model that allows for narrow framing ⋮ Myopic loss aversion, reference point, and money illusion ⋮ Optimal frequency of portfolio evaluation in a choice experiment with ambiguity and loss aversion

Cites Work

• First order versus second order risk aversion
• Advances in prospect theory: cumulative representation of uncertainty
• Choice bracketing. (With commentaries)
• Prospect Theory and Asset Prices
• The Framing of Decisions and the Psychology of Choice
• Prospect Theory: An Analysis of Decision under Risk
• Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework

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