EXOGENOUS ENDOWMENT-ENDOGENOUS REFERENCE POINT

• 成果类型: Article
• 署名作者: Maltz, Amnon
• 署名单位: University of Haifa
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/uez044
• 发表日期: 2020
• 页码: 160-182
• 关键词: willingness; CHOICE; pay; accept; MODEL

摘要

We develop a model in the presence of categories that creates a link between the agent's exogenous endowment and an endogenous reference point. The reference point is the best feasible alternative in the endowment's category. This reference generates a constraint set from which the final choice is made according to utility maximisation. The model predicts category bias, which generalises the status quo bias by attracting the agent to her endowment's category but not necessarily to the endowment itself. We show that it accommodates recent experimental findings regarding the presence and absence of status quo bias in the realm of uncertainty. In a stylised financial setup, we show that it may lead to a risk premium even with risk-neutral agents.