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De Gustibus and Disputes about Reference Dependence

Pol Campos-Mercade et al.

The Review of Economic Studies2026https://doi.org/10.1093/restud/rdag023article
FT50AJG 4*ABDC A*
Weight
0.50

Abstract

Existing tests of reference-dependent preferences assume universal loss aversion. This paper examines the implications of heterogeneity in gain-loss attitudes for such tests. In experiments on labour supply and exchange behaviour, we first measure gain-loss attitudes and then study a canonical treatment effect that distinguishes different models of reference dependence. We document substantial heterogeneity in gain-loss attitudes and evidence against universal loss aversion. Moreover, we find heterogeneous treatment effects over gain-loss attitudes consistent with formulations of expectations-based reference points. Assuming homogeneous preferences would lead to different and potentially incorrect conclusions in these tests. Our findings provide foundational support for reference points derived from expectations and help reconcile inconsistencies in prior empirical exercises.

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https://doi.org/https://doi.org/10.1093/restud/rdag023

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@article{pol2026,
  title        = {{De Gustibus and Disputes about Reference Dependence}},
  author       = {Pol Campos-Mercade et al.},
  journal      = {The Review of Economic Studies},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1093/restud/rdag023},
}

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De Gustibus and Disputes about Reference Dependence

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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