Investment in education under disappointment aversion

Anderberg, Dan and Cerrone, Claudia ORCID: https://orcid.org/0000-0003-1551-6723 (2017) Investment in education under disappointment aversion. Economics Bulletin, 37 (3) . pp. 1533-1540. ISSN 1545-2921 [Article]

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Abstract

This paper develops a model of risky investment in education under disappointment aversion, modelled as loss aversion around one's endogenous expectation. The model shows that disappointment aversion reduces investments in education for lower ability people and increases investments for higher ability people, thereby magnifying the gap between them generated by the riskiness of education.

Item Type: Article
Research Areas: A. > Business School > Economics
Item ID: 30776
Notes on copyright: The article is published by Economics Bulletin as: Dan Anderberg and Claudia Cerrone, (2017) ''Investment in education under disappointment aversion'', Economics Bulletin, Volume 37, Issue 3, pages 1533-1540.
The published article is reproduced in this repository in line with the publisher's terms.
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Depositing User: Claudia Cerrone
Date Deposited: 03 Aug 2020 09:00
Last Modified: 09 Feb 2022 10:38
URI: https://eprints.mdx.ac.uk/id/eprint/30776

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