changes. We tested this prediction by conducting a randomized field experiment with bicycle messengers. In contrast to … preferences, since the wage in our experiment directly rewarded effort. We show that a simple model of loss averse, reference … reduce effort in response to higher wages. Our model and our results also reconcile the seemingly contradictory evidence …

randomized field experiment in a setting in which workers were free to choose their working times and their efforts during … experiment we can show that only loss averse individuals exhibit a significantly negative effort response to the wage increase …

supply using a real effort experiment. Two results stand out. First, no one theory seems to fit the pooled data. On average …