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Preference for hope: A behavioral definition

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  • Chen, Zhuo

Abstract

Hope is the emotional feeling experienced when a desired outcome happens with a positive probability. This article provides a behavioral definition of preference for hope. The definition requires the decision maker to have two behavioral patterns: hope preservation by delaying the resolution of uncertainty, and hope-seeking by taking risk. I show that if people have a preference for hope, then it violates simultaneously the axiom of time neutrality, dynamic consistency and expected stationarity.

Suggested Citation

  • Chen, Zhuo, 2022. "Preference for hope: A behavioral definition," Economics Letters, Elsevier, vol. 221(C).
    • Handle: RePEc:eee:ecolet:v:221:y:2022:i:c:s0165176522003949
    DOI: 10.1016/j.econlet.2022.110920
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    References listed on IDEAS

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    1. Segal, Uzi, 1990. "Two-Stage Lotteries without the Reduction Axiom," Econometrica, Econometric Society, vol. 58(2), pages 349-377, March.
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    3. Kocher, Martin G. & Krawczyk, Michal & van Winden, Frans, 2014. "‘Let me dream on!’ Anticipatory emotions and preference for timing in lotteries," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 29-40.
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    More about this item

    Keywords

    Hope; Risk taking; Resolution of uncertainty; Dynamic consistency;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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