Expected utility versus cumulative prospect theory in an evolutionary model of bargaining

• Published in: Journal of economic dynamics & control Vol. 137; p. 104332
• Main Author: Khan, Abhimanyu
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.04.2022
• Subjects: Bargaining; Cumulative prospect theory; Evolution; Expected utility; Loss-aversion; Probability-weighting; Reference-dependent preference; D01; C78; Reference-dependent preference; Cumulative prospect theory; Probability-weighting; Loss-aversion; Bargaining; Evolution; D90; Expected utility; D81; C73; D83

I examine the effect of decision-making processes on the dynamics of bargaining over a fixed pie by comparing the share received when individuals are subject to reference-dependent preferences, loss-aversion, and probability-weighting, to the share they would receive on choosing by maximising expect...