The Role of Expectations in the Formation of Reference Points
نویسندگان
چکیده
This paper studies the role of expectations in the formation of reference points. We present a questionnaire study and an experiment in which both expectations and the status quo are salient. We find that when expectations are present, they have a significant impact on reference point formation and subsequent risky choice. Therefore, it is generally not sufficient to equate the reference point with the status quo.
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