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...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2009
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| _version_ | 1797069204080295936 |
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| author | Prowse, V Gill, D |
| author_facet | Prowse, V Gill, D |
| author_sort | Prowse, V |
| collection | OXFORD |
| description | 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 to estimate the strength of disappointment aversion on average and the heterogeneity in disappointment aversion across the population. |
| first_indexed | 2024-03-06T22:21:00Z |
| format | Working paper |
| id | oxford-uuid:550cc83f-b0e5-478a-b8ad-f26875b841d4 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:21:00Z |
| publishDate | 2009 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:550cc83f-b0e5-478a-b8ad-f26875b841d42022-03-26T16:41:35ZA Structural Analysis of Disappointment Aversion in a Real Effort Competition.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:550cc83f-b0e5-478a-b8ad-f26875b841d4EnglishDepartment of Economics - ePrintsDepartment of Economics (University of Oxford)2009Prowse, VGill, DWe 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 to estimate the strength of disappointment aversion on average and the heterogeneity in disappointment aversion across the population. |
| spellingShingle | Prowse, V Gill, D A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title | A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title_full | A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title_fullStr | A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title_full_unstemmed | A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title_short | A Structural Analysis of Disappointment Aversion in a Real Effort Competition. |
| title_sort | structural analysis of disappointment aversion in a real effort competition |
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