Paris Saclay Seminar
If you can you must: Information, utility and loss aversion
Lionel Page (University of Queensland)
Absract:
We consider utility as a reward system shaped by evolution to motivate us to make the best decisions possible. An optimal system consists of a reference dependent utility function that adapts to expectations. We show that anticipatory utility and loss aversion emerge as features of this optimal system that encourage the agent to set the reference point to the level of his expectations.
Joint work with Greg Kubitz.
Location:
Room 2E29, CEPS ENS Paris-Saclay
4 avenue des Sciences, 91190, Gif-sur-Yvette
