Much experimental evidence indicates that choice depends on the status quo or reference level: changes of reference point often lead to reversals of preference. The authors present a reference-dependent theory of consumer choice, which explains such effects by a deformation of indifference...

Two core meanings of 'utility' are distinguished. 'Decision utility' is the weight of an outcome in a decision. 'Experienced utility' is a hedonic quality, as in J. Bentham's usage. Experienced utility can be reported in real time (instant utility) or in retrospective evaluations of past...

Estimates of the effect of college selectivity on earnings may be biased because elite colleges admit students, in part, based on characteristics that are related to future earnings. We matched students who applied to, and were accepted by, similar colleges to try to eliminate this bias. Using...

This paper analyzes data on 11,600 students and their teachers who were randomly assigned to different size classes from kindergarten through third grade. Statistical methods are used to adjust for nonrandom attrition and transitions between classes. The main conclusions are (1) on average,...

This paper examines the effect of skill-biased technological change as measured by computerization on the recent widening of U.S. educational wage differentials. An analysis of aggregate changes in the relative supplies and wages of workers by education from 1940 to 1996 indicates strong and...