Goals as Reference Points

@article{Heath1999GoalsAR,
  title={Goals as Reference Points},
  author={Chip Heath and Richard P. Larrick and George Wu},
  journal={Cognitive Psychology},
  year={1999},
  volume={38},
  pages={79-109}
}
We argue that goals serve as reference points and alter outcomes in a manner consistent with the value function of Prospect Theory (Kahneman & Tversky, 1979; Tversky & Kahneman, 1992). We present new evidence that goals inherit the properties of the value function-not only a reference point, but also loss aversion and diminishing sensitivity. We also use the value function to explain previous empirical results in the goal literature on affect, effort, persistence, and performance. 
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