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Manipulating Reference States: the Effect of Attitudes on Utility

  • Astrid Matthey

    ()

    (Max-Planck-Institute of Economics)

In 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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File URL: http://zs.thulb.uni-jena.de/receive/jportal_jparticle_00101341
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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-044.

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Date of creation: 30 May 2008
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Handle: RePEc:jrp:jrpwrp:2008-044
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