This paper considers a model of reference-dependent utility in which the individual makes a conscious choice of her … reference point for future consumption. The model incorporates the combination of loss aversion and anticipatory utility as … competing forces in the determination of the optimal reference point: anticipating better outcomes boosts current utility but …

A decision maker (DM) is asked to make choices from a set of acts, which entail both risk and uncertainty in the sense … choice the DM can make) can also be rationalized by the DM maximizing her subjective expected utility for some subjective …