TY  - RPRT
        AU  - Gill, David
AU  - Prowse, Victoria L.
        TI  - A Structural Analysis of Disappointment Aversion in a Real Effort Competition
        PY  - 2009/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4536
        UR  - https://www.iza.org/publications/dp4536
        AB  - 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.
        KW  - expectations
KW  - disappointment aversion
KW  - loss aversion
KW  - reference-dependent preferences
KW  - reference point adjustment
KW  - tournament
KW  - real effort experiment
KW  - slider task
        ER  -