Risk-neutral firms can extract unbounded profits from consumers with prospect theory preferences
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Publication:417637
DOI10.1016/J.JET.2012.01.002zbMATH Open1258.91125OpenAlexW2120015193MaRDI QIDQ417637FDOQ417637
Authors: Eduardo M. Azevedo, Daniel Gottlieb 
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
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Cites Work
- Risk, ambiguity and the Savage axioms
- The Probability Weighting Function
- Advances in prospect theory: cumulative representation of uncertainty
- Parameter-Free Elicitation of Utility and Probability Weighting Functions
- Prospect Theory: An Analysis of Decision under Risk
- A model of reference-dependent preferences
- Le Comportement de l'Homme Rationnel devant le Risque: Critique des Postulats et Axiomes de l'Ecole Americaine
- Violations of the betweenness axiom and nonlinearity in probability
- Cumulative prospect theory and the St. Petersburg paradox
- Curvature of the Probability Weighting Function
- Preferences with frames: A new utility specification that allows for the framing of risks
- Nonlinear Decision Weights in Choice Under Uncertainty
Cited In (8)
- Preferences over rich sets of random variables: on the incompatibility of convexity and semicontinuity in measure
- Optimal exit time from casino gambling: strategies of precommitted and naive gamblers
- Risk-robust mechanism design for a prospect-theoretic buyer
- Lack of prevalence of the endowment effect: an equilibrium analysis
- Efficient regulated entry in competitive markets with demand uncertainty
- Randomized strategies and prospect theory in a dynamic context
- Arrow-Debreu equilibria for rank-dependent utilities
- Strategic framing to influence clients' risky decisions
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