Title:

Risk-Neutral Firms Can Extract Unbounded Profits from Consumers with Prospect Theory Preferences

Authors:

Eduardo M. Azevedo (Harvard U)
Daniel Gottlieb (U PA)

Journal:

Journal of Economic Theory

Year:

2012

Volume:

147

Pages:

1291-1299

JEL codes:

D11 - Consumer Economics: Theory
D21 - Firm Behavior
D81 - Criteria for Decision-Making under Risk and Uncertainty