lotteries. I consider a profit-maximizing monopolist serving loss-averse consumers with rational expectations about the lottery … the purchase is complete. I identify loss aversion as an important factor explaining the existence of vertical product … lottery with stochastic and lower expected quality. When consumers are reasonably loss averse, I show that the profit increase …

values in single-unit English and Dutch clock auctions. Bidders' reference points are endogenous and determined by their …

I examine whether stochastic contracts benefit the principal in the setting of moral hazard and loss aversion …. Incorporating that the agent is expectation-based loss averse and allowing the principal to add noise to performance signals, I find … optimal deterministic contract for almost any degree of loss aversion. The optimal stochastic contract pays a high wage …

(type), and a gain-loss valuation that depends on deviations of purchased quality from a reference point. Following Koszegi … Rabin (2006), we consider loss-averse buyers who evaluate gains and losses in terms of changes in the consumption valuation … of the Mirrlees representation of the indirect utility to fully characterize optimal contracts for loss-averse consumers …