Investment in education under disappointment aversion


Anderberg, D. and Cerrone, C. 2017. Investment in education under disappointment aversion. Economics Bulletin. 37 (3), pp. 1533-1540.
TitleInvestment in education under disappointment aversion
AuthorsAnderberg, D. and Cerrone, C.

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.

JournalEconomics Bulletin
Publication dates
Online02 Jul 2017
Publication process dates
Deposited03 Aug 2020
Submitted17 Dec 2016
Accepted02 Jul 2017
Output statusPublished
Publisher's version
Copyright Statement

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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