1 code implementation • 23 Jan 2024 • Luca De Gennaro Aquino, Xuedong He, Moris Simon Strub, Yuting Yang
First, we consider a general model in which the agent's preferences include both contemporaneous gain-loss utility, that is, utility from the difference between current consumption and previously held expectations about current consumption, and prospective gain-loss utility, that is, utility from the difference between intertemporal beliefs about future consumption.
