A Structural Analysis of Disappointment Aversion in a Real Effort Competition.
We develop a novel computerized real effort task, based on moving sliders across a screen, to test experimentally whether agents are disappointment averse when they compete in a real effort sequential-move tournament. Our theory predicts that a disappointment averse agent, who is loss averse around her endogenous expectations-based reference point, responds negatively to her rival’s effort. We find significant evidence for this discouragement effect, and use the Method of Simulated Moments ...Expand abstract
- Discussion paper series
- Publication date:
- Local pid:
- Copyright date:
Views and Downloads
If you are the owner of this record, you can report an update to it here: Report update to this record