Hedonic Utility, Loss Aversion and Moral Hazard

This paper reviews recent advances in the modelling of hedonic utility and the measurement of its physiological correlates. The paper also argues that incorporating hedonic experiences can enrich economic models. An example of such an application — a principal–agent model with moral hazard — is presented and thoroughly analyzed. Its implications are then compared with the structure of incentive contracts observed in practice.

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Year of publication:	2010
Authors:	Iantchev, Emil P.
Published in:	Foundations and Trends(R) in Microeconomics. - now publishers. - Vol. 5.2010, 7, p. 429-475
Publisher:	now publishers
Subject:	Hedonic utility \| Principle-agent problem \| Loss aversion \| Incentive contracts \| Moral hazard

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Extent:	application/xml
Type of publication:	Article
Other identifiers:	10.1561/0700000041 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010693732