Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94619
Authors: 
Harbaugh, Rick
Kornienko, Tatiana
Year of Publication: 
2000
Series/Report no.: 
Claremont Colleges Working Papers in Economics 2000-38
Abstract: 
People are sometimes risk-averse in gains but risk-loving in losses. Such behavior and other anomalies underlying prospect theory arise from a model of local status maximization in which consumers compare their wealth with other consumers of similar wealth. This social explanation shares key features with the psychological explanation o.ered by Kahneman and Tversky.
Subjects: 
prospect theory
status
reference group
loss aversion
risk loving
JEL: 
D81
D11
Document Type: 
Working Paper

Files in This Item:
File
Size
278.04 kB





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