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| LEADER |
01391nam a2200241Ia 4500 |
| 001 |
10.1007-s11166-019-09318-0 |
| 008 |
220511s2019 CNT 000 0 und d |
| 020 |
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|a 08955646 (ISSN)
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| 245 |
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|a Resolving Rabin’s paradox
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| 260 |
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|b Springer
|c 2019
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| 856 |
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|z View Fulltext in Publisher
|u https://doi.org/10.1007/s11166-019-09318-0
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|a We present a theoretical model of Rabin’s famous calibration paradox that resolves confusions in the literature and that makes it possible to identify the causes of the paradox. Using suitable experimental stimuli, we show that the paradox truly violates expected utility and that it is caused by reference dependence. Rabin already showed that utility curvature alone cannot explain his paradox. We, more strongly, do not find any contribution of utility curvature to the explanation of the paradox. We find no contribution of probability weighting either. We conclude that Rabin’s paradox underscores the importance of reference dependence. © 2020, The Author(s).
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|a Loss aversion
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| 650 |
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|a Prospect theory
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| 650 |
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|a Rabin’s paradox
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| 650 |
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|a Reference dependence
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| 700 |
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|a Bleichrodt, H.
|e author
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|a Doctor, J.N.
|e author
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|a Gao, Y.
|e author
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|a Li, C.
|e author
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|a Meeker, D.
|e author
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|a Wakker, P.P.
|e author
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| 773 |
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|t Journal of Risk and Uncertainty
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