In business, agents are exposed to both hidden information and hidden action. Occasionally, reputation for credibility is valuable in solving or mitigating the economic consequences of these problems. A ‘good’ firm can distinguish itself from a ‘bad’ firm by sending a signal about its...

One of the important contributions is that a structural model with the reference point and loss aversion for intertemporal choice was developed to estimate the coefficient of loss aversion and the reference points of individuals.