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Prospect-theory’s Diminishing Sensitivity Versus Economics’ Intrinsic Utility of Money: How the Introduction of the Euro can be Used to Disentangle the Two Empirically

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  • Peter Wakker

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  • Veronika Köbberling

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  • Christiane Schwieren

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  • Peter Wakker & Veronika Köbberling & Christiane Schwieren, 2007. "Prospect-theory’s Diminishing Sensitivity Versus Economics’ Intrinsic Utility of Money: How the Introduction of the Euro can be Used to Disentangle the Two Empirically," Theory and Decision, Springer, vol. 63(3), pages 205-231, November.
  • Handle: RePEc:kap:theord:v:63:y:2007:i:3:p:205-231
    DOI: 10.1007/s11238-007-9040-8
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    Cited by:

    1. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, Oxford University Press, vol. 121(4), pages 1133-1165.
    2. Booij, Adam S. & van de Kuilen, Gijs, 2009. "A parameter-free analysis of the utility of money for the general population under prospect theory," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 651-666, August.
    3. Adam Booij & Bernard Praag & Gijs Kuilen, 2010. "A parametric analysis of prospect theory’s functionals for the general population," Theory and Decision, Springer, vol. 68(1), pages 115-148, February.
    4. James Cox & Vjollca Sadiraj & Ulrich Schmidt, 2015. "Paradoxes and mechanisms for choice under risk," Experimental Economics, Springer;Economic Science Association, vol. 18(2), pages 215-250, June.
    5. Leites, Martin & Ramos, Xavier, 2018. "The Effect of Relative Concern on Life Satisfaction: Relative Deprivation and Loss Aversion," IZA Discussion Papers 11404, Institute for the Study of Labor (IZA).
    6. Thomas Garcia & Sébastien Massoni, 2017. "Aiming to choose correctly or to choose wisely? The optimality-accuracy trade-off in decisions under uncertainty," Working Papers halshs-01631540, HAL.
    7. Loreto Llorente & Josemari Aizpurua, 2008. "A Betting Market: Description and a Theoretical Explanation of Bets in Pelota Matches," Theory and Decision, Springer, vol. 64(2), pages 421-446, March.
    8. Yao, Jing & Li, Duan, 2013. "Prospect theory and trading patterns," Journal of Banking & Finance, Elsevier, vol. 37(8), pages 2793-2805.
    9. Smolkin, Anton, 2016. "Age Policy. Analysis of Generational Stratification of Russian Society," Working Papers 7611, Russian Presidential Academy of National Economy and Public Administration.
    10. Martin G. Kocher & Julius Pahlke & Stefan T. Trautmann, 2013. "Tempus Fugit : Time Pressure in Risky Decisions," Management Science, INFORMS, vol. 59(10), pages 2380-2391, October.
    11. Dertwinkel-Kalt, Markus & Riener, Gerhard, 2016. "A first test of focusing theory," Working Papers 16-08, University of Mannheim, Department of Economics.
    12. Vendrik, Maarten C.M. & Woltjer, Geert, 2006. "Happiness and Loss Aversion: When Social Participation Dominates Comparison," IZA Discussion Papers 2218, Institute for the Study of Labor (IZA).
    13. Olivier Armantier & Wändi Bruine de Bruin & Giorgio Topa & Wilbert Klaauw & Basit Zafar, 2015. "Inflation Expectations And Behavior: Do Survey Respondents Act On Their Beliefs?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 505-536, May.
    14. Nathalie Etchart-Vincent, 2009. "The shape of the utility function under risk in the loss domain and the "ruinous losses" hypothesis: some experimental results," Economics Bulletin, AccessEcon, vol. 29(2), pages 1393-1402.
    15. Botond Koszegi & Matthew Rabin, 2007. "Reference-Dependent Risk Attitudes," American Economic Review, American Economic Association, vol. 97(4), pages 1047-1073, September.
    16. Irma Machielse & Danielle Timmermans & Peter Wakker, 2007. "The effects of statistical information on risk ambiguity attitudes, and on rational insurance decisions," Natural Field Experiments 00338, The Field Experiments Website.
    17. Loreto Llorente & Josemari Aizpurua, 2006. "A BETTING MARKET: Description and a theoretical explanation of bets in Pelota Matches," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0603, Departamento de Economía - Universidad Pública de Navarra.
    18. Hwang, Soosung & Satchell, Steve E., 2010. "How loss averse are investors in financial markets?," Journal of Banking & Finance, Elsevier, vol. 34(10), pages 2425-2438, October.
    19. Astrid Hopfensitz & Frans Winden, 2008. "Dynamic Choice, Independence and Emotions," Theory and Decision, Springer, vol. 64(2), pages 249-300, March.
    20. Vendrik, Maarten C.M. & Woltjer, Geert B., 2007. "Happiness and loss aversion: Is utility concave or convex in relative income?," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1423-1448, August.
    21. Jose-Luis Pinto-Prades & Jose-Maria Abellan-Perpiñan, 2012. "When normative and descriptive diverge: how to bridge the difference," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(4), pages 569-584, April.
    22. M. Pandelaere & B. Briers, 2011. "How to Make a 29% Increase Look Bigger: Numerosity Effects in Option Comparisons," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/712, Ghent University, Faculty of Economics and Business Administration.
    23. Peter P. Wakker & Daniëlle R. M. Timmermans & Irma Machielse, 2007. "The Effects of Statistical Information on Risk and Ambiguity Attitudes, and on Rational Insurance Decisions," Management Science, INFORMS, vol. 53(11), pages 1770-1784, November.

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