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ToolsMunro, A. and Sugden, R. (2003) On the theory of reference-dependent preferences. Journal of Economic Behavior and Organization, 50 (4). pp. 407-428. ISSN 0167-2681
Full text not available from this repository. (Request a copy)Abstract
A theory is proposed in which preferences are conditional on reference points. It is related to Tversky and Kahneman's reference-dependent preference theory, but is simpler and deviates less from conventional consumer theory. Preferences conditional on any given reference point satisfy conventional assumptions. Apart from a continuity condition, the only additional restriction is to rule out cycles of pairwise choice. The theory is consistent with observations of status quo bias and related effects. Reference points are treated as subject to change during the course of trade. The implications of endogeneity of reference points for behaviour in markets are investigated.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | status quo bias,loss aversion,reference-dependence,prospect theory |
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Behavioural Economics |
| Related URLs: | |
| Depositing User: | Pure Connector |
| Date Deposited: | 19 Nov 2013 16:16 |
| Last Modified: | 18 Apr 2023 23:44 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/44545 |
| DOI: | 10.1016/S0167-2681(02)00033-1 |
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