Meza, David de; Reyniers, Diane - In: Economics Bulletin 33 (2013) 2, pp. 1446-1456
This experiment finds that the Becker-DeGroot-Marschak (BDM) (1964) valuation mechanism under-predicts the proportion of subjects choosing cash over an item. The extent of the divergence is increasing in risk aversion, which is consistent with reference dependent preferences. This suggests a...