Fabián Flores-Bazán, Antoine Soubeyran, Dinh The Luc:
Reference-dependent preferences and theory of change
We study a worthwhile to change model by using reference-dependent preference relations. We prove an existence result for maximal elements of the model which generalizes the well known Bronsted maximum principle and apply it to the problems of behavioral traps, satisfying change and Nash equilibrium in games with worthwhile to change payoff relations. In our study no compactness assumption is required.
This preprint gave rise to the following definitive publication(s):
Fabián FLORES-BAZáN, Antoine SOUBEYRAN, Dinh THE LUC: Maximal elements under reference-dependent preferences with applications to behavioral traps and games. Journal of Optimization Theory and Applications, vol. 155, 3, pp. 883-901, (2012).