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A Note on Reference-Dependent Choice with Threshold Representation

Author

Listed:
  • Qin Dan

    (Faculty of Economics, Tohoku Daigaku, 27-1, Kawauchi, Sendai, Japan)

Abstract

This note considers reference-dependent choice procedures shaped by a utility function and a threshold function. Alternatives are considered only when the utility gain of moving from the reference is bigger than the threshold. We impose no requirement on the threshold functions whereas previous works characterize the special case of strictly positive threshold functions. We also examine the case when the threshold function depends on both compared alternatives.

Suggested Citation

  • Qin Dan, 2020. "A Note on Reference-Dependent Choice with Threshold Representation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(1), pages 1-6, January.
    • Handle: RePEc:bpj:bejtec:v:20:y:2020:i:1:p:6:n:18
    DOI: 10.1515/bejte-2018-0142
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