Psychological Expected Utility Theory And Anticipatory Feelings

We extend expected utility theory to situations in which agents experience feelings of anticipation prior to the resolution of uncertainty. We show how these anticipatory feelings may result in time inconsistency. We provide an example from portfolio theory to illustrate the potential impact of anticipation on asset prices. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Year of publication:	2001
Authors:	Caplin, Andrew ; Leahy, John
Published in:	The Quarterly Journal of Economics. - MIT Press. - Vol. 116.2001, 1, p. 55-79
Publisher:	MIT Press

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005814676