We are often preoccupied with the future, experiencing dread at the thought of future misery and savoring the thought of future pleasure. Prior lab studies have found that these anticipatory emotions influence decision-making. In this article, using a novel approach, we use economic survey data...

Loss aversion and reference dependence are 2 keystones of behavioral theories of choice, but little is known about their underlying cognitive processes. We suggest an additional account for loss aversion that supplements the current account of the value encoding of attributes as gains or losses...

We study the endowment effect and expectation-based reference points in the field leveraging the setup of the Socio-Economic Panel. Households receive a small item for taking part in the panel, and we randomly assign respondents either a towel or a notebook, which they can exchange at the end of...