Reference Points and Effort Provision

  title={Reference Points and Effort Provision},
  author={Johannes Abeler and Armin Falk and Lorenz Goette and David Huffman},
  journal={Behavioral \& Experimental Economics},
A key open question for theories of reference-dependent preferences is what determines the reference point. One candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment, we manipulate the rational expectations of subjects and check whether this manipulation influences their effort provision. We find that effort provision is significantly different between treatments in the way predicted by models of expectation-based… 
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Lagged beliefs and reference-dependent utility
  • Alec Smith
  • Economics
    Journal of Economic Behavior & Organization
  • 2019
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