Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2013

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Revealed Preference Foundations of Expectations-Based Reference-Dependence

David J Freeman*

Last modified: 2013-04-17

Abstract


This paper provides revealed preference foundations for a model of expectations-based reference-dependence à la Kőszegi and Rabin (2006). Novel axioms provide distinguishing features of expectations-based reference-dependence under risk. The analysis completely characterizes the model's testable implications when expectations are unobservable.

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