Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Download A Model Of Reference Dependent Preferences full books in PDF, epub, and Kindle. Read online A Model Of Reference Dependent Preferences ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author : Botond Kőszegi
Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.:/5 (569 download)
Download or read book A Model of Reference-dependent Preferences written by Botond Kőszegi and published by . This book was released on 2004 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Evelyn Stommel
Publisher : Springer Science & Business Media
ISBN 13 : 3658006358
Total Pages : 229 pages
Book Rating : 4.6/5 (58 download)
Download or read book Reference-Dependent Preferences written by Evelyn Stommel and published by Springer Science & Business Media. This book was released on 2012-11-02 with total page 229 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most of our daily decisions are made under uncertainty and risk, without complete information about all relevant aspects. We all constantly make such decisions, from the simplest “should I take my raincoat today?” to more serious examples, such as those on investment and portfolio decisions, holding of shares, insurance patterns, or negotiation processes. Within these situations, the bounded rationality of individuals and institutions towards risk and uncertainty is embedded. The central theory underlying this study is prospect theory, an adequate model to predict the real and most often bounded rationality of human behavior given certain incentives, preferences, and constraints. Evelyn Stommel investigates a crucial question within behavioral economics, namely the research on reference points within human decision making processes. Based on experimental investigations, she focuses three key challenges: what constitutes a reference point, the process of the formation of a reference point, and factors influencing the formation of reference points.
Author :
Publisher : Elsevier
ISBN 13 : 0444633898
Total Pages : 749 pages
Book Rating : 4.4/5 (446 download)
Download or read book Handbook of Behavioral Economics - Foundations and Applications 1 written by and published by Elsevier. This book was released on 2018-09-27 with total page 749 pages. Available in PDF, EPUB and Kindle. Book excerpt: Handbook of Behavioral Economics: Foundations and Applications presents the concepts and tools of behavioral economics. Its authors are all economists who share a belief that the objective of behavioral economics is to enrich, rather than to destroy or replace, standard economics. They provide authoritative perspectives on the value to economic inquiry of insights gained from psychology. Specific chapters in this first volume cover reference-dependent preferences, asset markets, household finance, corporate finance, public economics, industrial organization, and structural behavioural economics. This Handbook provides authoritative summaries by experts in respective subfields regarding where behavioral economics has been; what it has so far accomplished; and its promise for the future. This taking-stock is just what Behavioral Economics needs at this stage of its so-far successful career. Helps academic and non-academic economists understand recent, rapid changes in theoretical and empirical advances within behavioral economics Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics Written for those who wish to become quickly acquainted with behavioral economics
Author : Maximilian Tenberge
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (936 download)
Download or read book Reference-Dependent Preferences written by Maximilian Tenberge and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author :
Publisher :
ISBN 13 :
Total Pages : 29 pages
Book Rating : 4.:/5 (464 download)
Download or read book A Test of the Theory of Reference-dependent Preferences written by and published by . This book was released on 1995 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Justin Buffat
Publisher :
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4.:/5 (13 download)
Download or read book Testing the Speed of Adjustment of the Reference Point in Models of Expectation-Based Reference-Dependent Preferences written by Justin Buffat and published by . This book was released on 2015 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We build on Köszegi and Rabin (2009) and propose a model in which the reference point consists of two periods lagged beliefs about consumption outcomes. As opposed to the original model in which the reference point instantaneously adjusts to new information, our formulation renders the reference point somewhat sticky and allows sensations of gain and losses to persist for more than one period. Using a controlled experiment, we assess the relative importance of t-1 lagged beliefs with respect to t-2 lagged beliefs. Our results suggest that the speed of adjustment of the reference point might depend on the size of the stakes at play. Under low stakes, subjects remain unaffected by our manipulation. We interpret this result as evidence of a very fast adjustment of the reference point. A follow-up study in which the stakes are multiplied threefold documents a context-dependent house money effect, a phenomenon which can be rationalized by multiple-lagged beliefs reference-dependent preferences. Overall, our results help understanding the conditions under which past beliefs and emotions should be expected to linger and to affect subsequent behavior.
Author : Rosario Claudia Macera Parra
Publisher :
ISBN 13 :
Total Pages : 182 pages
Book Rating : 4.:/5 (769 download)
Download or read book Essays on Reference-Dependent Preferences written by Rosario Claudia Macera Parra and published by . This book was released on 2010 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two chapters exploring the economic implications of reference-dependent preferences over incentive design and belief formation. The first chapter studies the intertemporal allocation of incentives in a repeated moral hazard model. Beside consumption utility, reference-dependent agents experience utility from changes in their expectations about present and future income caused by the performance measure realization. In contrast to the prediction with classical preferences but consistent with real-world contracts, this paper shows that if consumption utility is not too concave and if changes in expectations about present income carries sufficiently larger weight in utility than changes in expectations about future income, the optimal contract defers all present incentives into future payments by setting a present fixed wage. Despite this prediction, I further prove that several standard features of the contract with classical preferences--no rents to the agent, conditions to achieve first-best cost and non-optimality of random contracts--still hold. The second chapter studies the temporal path of subjective beliefs when a reference-dependent agent who experiences standard anticipatory utility and utility from changes in these anticipatory feelings waits T periods for a binary outcome realization. Following the optimal beliefs literature, in each period the agent chooses a belief about her likelihood of success to maximize her intertemporal utility. Consistent with the empirical evidence, the model predicts that optimism decreases as the pay-off date approaches if the outcome is important enough or if the agent is sufficiently loss averse. Intuitively, when the pay-off date is distant disappointment is less salient than the joy of hoping favorable outcomes; as the realization date gets closer, however, the threat of disappointment becomes important. Applying the model to the optimal timing of productivity bonuses, I find these should be granted as frequently as possible because optimism acts as a non-pecuniary motivator that allows the principal to induce the desired effort path at a cheaper expected cost.
Author : Robert Rutledge
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (133 download)
Download or read book Price Expectations and Reference-dependent Preferences written by Robert Rutledge and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We experimentally test Kőszegi and Rabin's (2006, 2007) theory of reference-dependent preferences in the context of price expectations. In an incentivised valuation task, participants are endowed with a mug and provide their willingness to accept (WTA) to sell it. We manipulate the sale price in a separate, exogenous forced sale scenario, which is predicted to produce a 'comparison effect', moving WTA in the opposite direction to the forced sale price. Consistent with the theory, we observe a treatment effect of between AUD $0.79 and $2.06 in the hypothesised direction; however, it is statistically insignificant. We also elicit participants' loss aversion to account for heterogeneity in the theorised effect; however, controlling for the interaction between our treatment and loss aversion does not consistently strengthen our result.
Author : Einat Neuman
Publisher :
ISBN 13 :
Total Pages : 21 pages
Book Rating : 4.:/5 (213 download)
Download or read book Reference-dependent Preferences and Loss Aversion written by Einat Neuman and published by . This book was released on 2007 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Quang Nguyen
Publisher :
ISBN 13 :
Total Pages : 61 pages
Book Rating : 4.:/5 (13 download)
Download or read book Flexibility Or Commitment written by Quang Nguyen and published by . This book was released on 2013 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: We incorporate reference dependent preferences and hyperbolic discounting to examine the demand for commitment devices. A new insight is that loss aversion, independent from time inconsistent preferences, affects demand for commitment devices in the face of uncertainty. Using a unique combination of experimental and household survey data from Vietnam, we explicitly investigate the effect of the behavioral parameters on demand for Rotating Savings and Credit Associations (Roscas), a well-known commitment device. We find that sufficiently great loss aversion increases the probability of Rosca take-up by 18.8 % among people living in stochastic environments. This finding is consistent with our model's predictions.
Author : Alistair Munro
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (61 download)
Download or read book A Theory of General Equilibrium with Reference-dependent Preferences written by Alistair Munro and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : E. Gaffeo
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (73 download)
Download or read book Reference-dependent Preferences and the Transmission of Monetary Policy written by E. Gaffeo and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Takaharu Ishii
Publisher :
ISBN 13 : 9789975341158
Total Pages : 44 pages
Book Rating : 4.3/5 (411 download)
Download or read book Reference-Dependent Preferences, Probability Judgments and REI written by Takaharu Ishii and published by . This book was released on 2020-03-28 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides empirical evidence that probability judgments help explain a reference-dependent preference. It explains using the data for Tokyo Taxi drivers which include the respondents about psychological questions. Probability judgments based on a dual process to cognition means judgements and calculations the probability when they determine something under uncertainty. It weakens the assumption that people have the same rationality based on the same process. We permit the difference of cognition to rationality and probability judgments. These probability judgments relate to reference points and drivers' personalities and intuition, which influence decision making and can explain several reference dependences. The difference of cognition to rationality, of consciousness which try to act rationality, determine their reference dependence type. It uses Rational Experienced Inventory as the indexes of cognition to rationality. Frequentist type has different target variables with case type, subjective type, and fortune type. Each probability judgment type has each target as reference points. Probability judgment types explain the type of cognition to rationality. This explains the endogeneity of reference dependence. This paper permits some type of cognition to rationality.
Author : Gao Mingjuan
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (16 download)
Download or read book Three Essays on Loss Aversion and Reference-dependent Preferences written by Gao Mingjuan and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Takaharu Ishii
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Download or read book Reference-Dependent Preferences and Probability Judgments written by Takaharu Ishii and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides empirical evidence that probability judgments help explain a reference-dependent preference by drivers in Tokyo. These probability judgments relate to reference points and drivers' personalities and intuition, which influence the decision making, and can explain several reference points. The difference of cognition to rationality, of consciousness which try to act rationality, determine their reference dependence type.
Author : Mariano Runco
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)
Download or read book Reference Dependent Preferences and Overbidding in Private and Common Value Auctions written by Mariano Runco and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes a tractable model of reference dependent preferences to explain overbidding in private and common value auctions. It is assumed that the reference point is proportional to the value of the object and that losses are weighed more heavily than gains in the utility function. Equilibrium bidding strategies are derived for first- and second-price private and common value auctions. It is found that this model fits the data of all experiments analyzed better than a standard risk neutral model; moreover, it explains overbidding in private value auctions better than other alternatives. These results suggest that reference dependence, among other factors, might play a role in the widespread tendency of subjects to overbid in most experimental auctions.
Author : Eric J. Allen
Publisher :
ISBN 13 :
Total Pages : 49 pages
Book Rating : 4.:/5 (886 download)
Download or read book Reference-Dependent Preferences written by Eric J. Allen and published by . This book was released on 2014 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Models of reference-dependent preferences propose that individuals evaluate outcomes as gains or losses relative to a neutral reference point. We test for reference dependence in a large dataset of marathon finishing times (n = 9,524,071). Models of reference-dependent preferences such as prospect theory predict bunching of finishing times at reference points. We provide visual and statistical evidence that round numbers (e.g., a four-hour marathon) serve as reference points in this environment and as a result produce significant bunching of performance at these round numbers. Bunching is driven by planning and adjustments in effort provision near the finish line and cannot be explained by explicit rewards (e.g., qualifying for the Boston Marathon), peer effects, or institutional features (e.g., pacesetters). We calibrate a simple model of prospect theory as well as other models of reference dependence and show that the basic qualitative shape of the empirical distribution of finishing times is consistent with parameters that have previously been estimated in the laboratory.
