Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/253464 
Year of Publication: 
2020
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 15 [Issue:] 4 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2020 [Pages:] 1509-1546
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
One of the most well-known models of non-expected utility is Gul (1991)'s model of Disappointment Aversion. This model, however, is defined implicitly, as the solution to a functional equation; its explicit utility representation is unknown, which may limit its applicability. We show that an explicit representation can be easily constructed, using solely the components of the implicit one. We also provide a more general result: an explicit representation for preferences in the Betweenness class that also satisfy Negative Certainty Independence (Dillenberger, 2010) or its counterpart. We show how our approach gives a simple way to behaviorally identify the parameters of the representation and to study the consequences of disappointment aversion in a variety of applications.
Subjects: 
Betweenness
cautious expected utility
disappointment aversion
non-expected utility
utility representation
strategic rationality
JEL: 
D80
D81
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.