Optimal Choice and Beliefs with Ex Ante Savoring and Ex Post Disappointment

Published Online:https://doi.org/10.1287/mnsc.1100.1185

References

  • Akerlof G. A., Dickens W. T. The economic consequences of cognitive dissonance. Amer. Econom. Rev. (1982) 72(3):307–319Google Scholar
  • Ang A., Bekaert G., Liu J. Why stocks may disappoint. J. Financial Econom. (2005) 76(3):471–508CrossrefGoogle Scholar
  • Bansal R., Yaron A. Risks for the long run: A potential resolution of the asset pricing puzzles. J. Finance (2004) 59(4):1481–1509CrossrefGoogle Scholar
  • Bell D. E. Disappointment in decision making under uncertainty. Oper. Res. (1985) 33(1):1–27LinkGoogle Scholar
  • Ben Mansour S., Jouini E., Marin J.-M., Napp C., Robert C. Are risk-averse agents more optimistic? A Bayesian estimation approach. J. Appl. Econometrics (2008) 23(6):843–860CrossrefGoogle Scholar
  • Brunnermeier M. K., Parker J. A. Optimal expectations. Amer. Econom. Rev. (2005) 95(4):1092–1118CrossrefGoogle Scholar
  • Caplin A. J., Leahy J. Psychological expected utility theory and anticipatory feelings. Quart. J. Econom. (2001) 116(1):55–80CrossrefGoogle Scholar
  • Carroll P. J., Sweeny K., Shepperd J. A. Forsaking optimism. Rev. General Psychol. (2006) 10(1):56–73CrossrefGoogle Scholar
  • Cohen A., Einav L. Estimating risk preferences from deductible choice. Amer. Econom. Rev. (2007) 97(3):745–788CrossrefGoogle Scholar
  • Constantinides G. M. Habit formation: A resolution of the equity premium puzzle. J. Political Econom. (1990) 98(3):519–543CrossrefGoogle Scholar
  • Eeckhoudt L., Rey B., Schlesinger H. A good sign for multivariate risk taking. Management Sci. (2007) 53(1):117–124LinkGoogle Scholar
  • Epstein L. G., Zin S. E. Substitution, risk aversion, and the temporal behavior of consumption and asset returns: A theoretical framework. Econometrica (1989) 57(4):973–969CrossrefGoogle Scholar
  • Gollier C. Optimal illusions and decisions under risk. (2005) . IDEI Working Paper 340, Toulouse School of Economics, Toulouse, FranceGoogle Scholar
  • Gul F. A theory of disappointment aversion. Econometrica (1991) 59(3):667–686CrossrefGoogle Scholar
  • Kimball M. S. Precautionary savings in the small and in the large. Econometrica (1990) 58(1):53–73CrossrefGoogle Scholar
  • Kimball M. S. Standard risk aversion. Econometrica (1993) 61(3):589–611CrossrefGoogle Scholar
  • Kopczuk W., Slemrod J. Denial of death and economic behavior. Adv. Theoretical Econom. (2005) 5(1). Article 5, http://www.bepress.com/bejte/advances/vol5/iss1/art5/Google Scholar
  • Kőszegi B., Rabin M. A model of reference-dependent preferences. Quart. J. Econom. (2006) 121(4):1133–1165CrossrefGoogle Scholar
  • Kőszegi B., Rabin M. Reference-dependent risk attitudes. Amer. Econom. Rev. (2007) 97(4):1047–1073CrossrefGoogle Scholar
  • Kreps D. M., Porteus E. L. Temporal von Neumann-Morgenstern and induced preferences. J. Econom. Theory (1979) 20(1):81–109CrossrefGoogle Scholar
  • Machina M. J. Expected utility analysis without the independence axiom. Econometrica (1982) 50(2):277–323CrossrefGoogle Scholar
  • Machina M. J. Temporal risk and the nature of induced preferences. J. Econom. Theory (1984) 33(2):199–231CrossrefGoogle Scholar
  • Machina M. J. Choice under uncertainty: Problems solved and unsolved. J. Econom. Perspectives (1987) 1(1):121–154CrossrefGoogle Scholar
  • McGraw A. P., Mellers B. A., Ritov I. The affective costs of overconfidence. J. Behav. Decision Making (2004) 17(4):281–295CrossrefGoogle Scholar
  • Mellers B. A., Schwartz A., Ho K., Ritov I. Decision affect theory: Emotional reactions to the outcomes of risky options. Psychol. Sci. (1997) 8(8):423–429CrossrefGoogle Scholar
  • Pashigian B. P., Schkade L. L., Menefee G. H. The selection of an optimal deductible for a given insurance policy. J. Bus. (1966) 39(1):35–44CrossrefGoogle Scholar
  • Rothschild M., Stiglitz J. E. Increasing risk I: A definition. J. Econom. Theory (1970) 2(3):225–243CrossrefGoogle Scholar
  • Shepperd J. A., McNulty J. K. Mood following outcomes: The pivotal role of expectations. (1998) . Working paper, University of Florida, GainesvilleGoogle Scholar
  • Shepperd J. A., McNulty J. K. The affective consequences of expected and unexpected outcomes. Psychol. Sci. (2002) 13(1):85–88CrossrefGoogle Scholar
  • Shepperd J. A., Ouellette J. A., Fernandez J. K. Abandoning unrealistic optimism: Performance estimates and the temporal proximity of self-relevant feedback. J. Personality Soc. Psychol. (1996) 70(4):844–855CrossrefGoogle Scholar
  • Sydnor J. (Over)insuring modest risks. Amer. Econom. J.: Appl. Econom. (2010) . ForthcomingGoogle Scholar
  • Taylor K. M., Shepperd J. A. Bracing for the worst: Severity, testing, and feedback timing as moderators of the optimistic bias. Personality Soc. Psychol. Bull. (1998) 24(9):915–926CrossrefGoogle Scholar
  • Van Dijk W. W., Zeelenberg M., van der Pligt J. Blessed are those who expect nothing: Lowering expectations as a way of avoiding disappointment. J. Econom. Psychol. (2003) 24(4):505–516CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.