Crawford, Vincent P.; Meng, Juanjuan - In: American Economic Review 101 (2011) 5, pp. 1912-32
This paper proposes a model of cab drivers' labor supply, building on Henry S. Farber's (2005, 2008) empirical analyses and Botond Koszegi and Matthew Rabin's (2006; henceforth "KR") theory of reference-dependent preferences. Following KR, our model has targets for hours as well as income,...
