Risk-neutral firms can extract unbounded profits from consumers with prospect theory preferences
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Publication:417637
DOI10.1016/J.JET.2012.01.002zbMath1258.91125OpenAlexW2120015193MaRDI QIDQ417637
Daniel Gottlieb, Eduardo M. Azevedo
Publication date: 14 May 2012
Published in: Journal of Economic Theory (Search for Journal in Brave)
Full work available at URL: https://doi.org/10.1016/j.jet.2012.01.002
Related Items (8)
Preferences over rich sets of random variables: on the incompatibility of convexity and semicontinuity in measure ⋮ Risk-robust mechanism design for a prospect-theoretic buyer ⋮ Efficient regulated entry in competitive markets with demand uncertainty ⋮ Strategic framing to influence clients' risky decisions ⋮ Randomized strategies and prospect theory in a dynamic context ⋮ ARROW–DEBREU EQUILIBRIA FOR RANK‐DEPENDENT UTILITIES ⋮ Optimal Exit Time from Casino Gambling: Strategies of Precommitted and Naive Gamblers ⋮ Lack of prevalence of the endowment effect: an equilibrium analysis
Cites Work
- Advances in prospect theory: cumulative representation of uncertainty
- Violations of the betweenness axiom and nonlinearity in probability
- Preferences with frames: A new utility specification that allows for the framing of risks
- Cumulative prospect theory and the St. Petersburg paradox
- Risk, Ambiguity, and the Savage Axioms
- Parameter-Free Elicitation of Utility and Probability Weighting Functions
- Nonlinear Decision Weights in Choice Under Uncertainty
- A Model of Reference-Dependent Preferences*
- Prospect Theory: An Analysis of Decision under Risk
- Curvature of the Probability Weighting Function
- The Probability Weighting Function
- Le Comportement de l'Homme Rationnel devant le Risque: Critique des Postulats et Axiomes de l'Ecole Americaine
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