BEGIN:VCALENDAR VERSION:2.0 PRODID:-//hacksw/handcal//NONSGML v1.0//EN CALSCALE:GREGORIAN BEGIN:VEVENT DTEND:20181213T213000Z UID:5c11714b6cb3d DTSTAMP:20181212T123627Z LOCATION:VPD 302 DESCRIPTION:

Although reference dependence plays a central role in explaining behavior\, little is known about the way they are selected. This paper identifies empirically which reference point people use in decision under risk. We assume a comprehensive reference-dependent model that nests the main reference-dependent theories\, including prospect theory\, and that allows isolating the reference point rule from other behavioral parameters. Our experiment involved high stakes with payoffs up to a week’s salary. We used an optimal design to select the choices in the experiment and Bayesian hierarchical modeling for estimation. The most common reference points were the status quo and a security level (the maximum of the minimal outcomes of the prospects in a choice). We found little support for the use of expectations-based reference points.

URL;VALUE=URI:https://cesr.usc.edu/seminars/searching_reference_point-1544055535 SUMMARY:"Searching for the Reference Point" DTSTART:20181213T200000Z END:VEVENT END:VCALENDAR