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biases generate prior-dependent information preferences, such that agents may avoid information when being unconfident but … going to be used, the model allows us to explore how these predictions change with either individual preferences or the …
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I show theoretically that applying the model of Köszegi and Rabin (2006) to a simple purchasing decision where consumers are ex-ante uncertain about the price realisation, gives - when changing the underlying distribution of expected prices - rise to counterintuitive predictions in contrast...
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An important advance in the study of reference-dependent preferences is the discipline provided by coherent accounts of …
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A key open question for theories of reference-dependent preferences is what determines the reference point. One …-based reference-dependent preferences: if expectations are high, subjects work longer and earn more money than if expectations are low …
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