Goette, Lorenz and Graeber, Thomas and Kellogg, Alexandre and Sprenger, Charles (2018) Heterogeneity of Loss Aversion and Expectations-Based Reference Points. . (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20200722-084620971
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Abstract
This project examines the role of heterogeneity in loss aversion for identifying models of expectations-based reference dependence (Kőszegi and Rabin, 2006, 2007) (KR). Different levels of loss aversion lead to different signs for comparative statics previously used to test the KR model. In an experiment with 607 subjects, we show heterogeneous treatment effects over loss aversion types. Recognizing heterogeneity in loss aversion allows us to reliably recover the KR model’s central element of expectations-based reference points. Additional effects are discussed related to the subjective perception of exchange experiences.
| Item Type: | Report or Paper (Working Paper) | ||||||
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| Additional Information: | Date Written: April 27, 2018; Posted: 12 May 2018. | ||||||
| Subject Keywords: | Reference-Dependent Preferences, Rational Expectations, Personal Equilibrium, Endowment Effect, Expectations-Based Reference Points | ||||||
| Classification Code: | JEL: D81, D84, D12, D03 | ||||||
| DOI: | 10.2139/ssrn.3170670 | ||||||
| Record Number: | CaltechAUTHORS:20200722-084620971 | ||||||
| Persistent URL: | https://resolver.caltech.edu/CaltechAUTHORS:20200722-084620971 | ||||||
| Official Citation: | Goette, Lorenz and Graeber, Thomas and Kellogg, Alexandre and Sprenger, Charles, Heterogeneity of Loss Aversion and Expectations-Based Reference Points (April 27, 2018). http://dx.doi.org/10.2139/ssrn.3170670 | ||||||
| Usage Policy: | No commercial reproduction, distribution, display or performance rights in this work are provided. | ||||||
| ID Code: | 104499 | ||||||
| Collection: | CaltechAUTHORS | ||||||
| Deposited By: | Tony Diaz | ||||||
| Deposited On: | 22 Jul 2020 15:57 | ||||||
| Last Modified: | 16 Nov 2021 18:32 |
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