Hence, reference prices are not recursive. We provide a parsimonious formula to predict the reference points, which we test out-of-sample. The fit of the model is reasonably good. Management Science ...

GCSE OCR Making - OCR Measuring and using reference points Manufacturers need to consider the form, function and cost of designs before production. Designers need to consider safety, availability ...

The optimal reference-dependent solution equals the optimal consumption solution (no loss aversion) if the reference point is selected fully endogenously. Given that loss aversion is widespread, we ...