The role of the marginal rate of substitution of wealth for a loss averse investor
The marginal rate of substitution and the relative prices of goods have been used in economics to explain household's behavior but they have not been used yet in the behavioral economics literature. This note attempts to fill the gap in the literature with an application to a loss averse investor's...| Link(s) zu Dokument(en): | IHS Publikation |
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| Hauptverfasser: | , |
| Format: | Article in Academic Journal PeerReviewed |
| Sprache: | Englisch |
| Veröffentlicht: |
2016
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| Zusammenfassung: | The marginal rate of substitution and the relative prices of goods have been used in economics to explain household's
behavior but they have not been used yet in the behavioral economics literature. This note attempts to fill the gap in
the literature with an application to a loss averse investor's demand for a risky asset in a one period model. (author's abstract) |
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