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Daily Archive August 23rd, 2004

A Model of Reference-Dependent Preferences

Filed in Research News
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MODELING PREFERENCES THAT RESPECT REFERENCE POINTS Reference-dependent preferences are everywhere. A working paper by Berkeley’s Botond Koszegi and Matt Rabin provides a welcome model of them. Read on. Quote: “Our goal in this paper was to put forward a fully specified model of reference dependent preferences that can accommodate existing evidence and, most importantly, be […]