candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

. -- Reference points ; expectations ; loss aversion ; risk aversion ; disappointment ; experiment … candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

. -- Reference Points ; Expectations ; Loss Aversion ; Risk Aversion ; Disappointment ; Experiment … candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

. -- Reference points ; expectations ; loss aversion ; risk aversion ; disappointment ; experiment … candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

This project examines the role of heterogeneity in loss aversion for identifying models of expectations-based reference … dependence (Kőszegi and Rabin, 2006, 2007) (KR). Different levels of loss aversion lead to different signs for comparative … statics previously used to test the KR model. In an experiment with 607 subjects, we show heterogeneous treatment effects over …

-pricing economy. Expectations-based loss aversion increases the equity premium and decreases the consumption-wealth ratio, because … painful, the agent wants to postpone such cuts to let his reference point decrease. Thus, even though shocks are i.i.d., loss …