@article{e15818439f4d497a91b635e55f696aee,
title = "Psychological expected utility theory and anticipatory feelings",
abstract = "We extend expected utility theory to situations in which agents experience feelings of anticipation prior to the resolution of uncertainty. We show how these anticipatory feelings may result in time inconsistency. We provide an example from portfolio theory to illustrate the potential impact of anticipation on asset prices.",
author = "Andrew Caplin and John Leahy",
note = "Funding Information: ford, Jon Elster, Nico Frijda, Daniel Gilbert, Simon Gilchrist, David Laibson, George Loewenstein, Mark Machina, Sendhil Mullainathan, Yaw Nyarko, Efe Ok, Matthew Rabin, Bob Rosenthal, Ben Slugowski, Charles Wilson, and Ruth Wyatt for valuable comments. Caplin thanks the C. V. Starr Center at New York University, and Leahy thanks the National Science Foundation and the Sloan Foundation for financial support.",
year = "2001",
month = feb,
doi = "10.1162/003355301556347",
language = "English (US)",
volume = "116",
pages = "55--79",
journal = "Quarterly Journal of Economics",
issn = "0033-5533",
publisher = "Oxford University Press",
number = "1",
}