Manipulating Reference States: the Effect of Attitudes on Utility
AbstractIn economic theory, utility depends on past, present and future outcomes. The experiment described in this paper suggests that utility also depends on people's attitudes, and that it can easily be manipulated through these attitudes. The results imply, ?rst, that purely outcome-based models of individual utility may be incomplete. Second, that reference-states are not determined completely endogenously but can be influenced from outside. And third, that experiments in economics may be sensitive to subtle details of the experimental design.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-044.
Date of creation: 30 May 2008
Date of revision:
utility; reference state; attitudes; priming; experiment;
Find related papers by JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D10 - Microeconomics - - Household Behavior - - - General
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-CBE-2008-06-07 (Cognitive & Behavioural Economics)
- NEP-EXP-2008-06-07 (Experimental Economics)
- NEP-HPE-2008-06-07 (History & Philosophy of Economics)
- NEP-UPT-2008-06-07 (Utility Models & Prospect Theory)
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