A Test of the Theory of Reference-Dependent Preferences

  title={A Test of the Theory of Reference-Dependent Preferences},
  author={Ian J. Bateman and Alistair Munro and Bruce Rhodes and C. Frank Starmer and Robert Sugden},
  journal={Quarterly Journal of Economics},
Eight alternative methods of eliciting preferences between money and a consumption good are identified: two of these are standard willingness-to-accept and willingness-to-pay measures. These methods differ with respect to the reference point used and the dimension in which responses are expressed. The loss aversion hypothesis of Tversky and Kahneman's theory of reference-dependent preferences predicts systematic differences between the preferences elicited by these methods. These predictions… 

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