Date of Award

5-24-2019

Document Type

Thesis

Degree Name

Bachelor of Science (B.S.) in Economics and University Honors

Department

Economics

First Advisor

J. Forrest Williams

Subjects

Economics -- Psychological aspects, Loss aversion, Employees -- Rating of -- Effect of wages on, Organizational behavior -- Economic aspects

DOI

10.15760/honors.749

Abstract

Reference-dependence has been a topic of interest in recent history for the field of economics. It’s implications that utility is not solely based on outcomes, but rather how outcomes are interpreted from a previously set expectation has the potential to effect many aspects of incentive structures. In this research, subjects complete a real effort task in which they are provided with information that creates shocks in their expectations. These shocks make the individual readjust to the new information, impacting performance in the real-effort task. We conclude that reference-dependence performance is impacted by adjusting reference points that may have a positive or negative impact on the individual performance, dependent on the valence of the shock.

Persistent Identifier

https://archives.pdx.edu/ds/psu/28920

Share

COinS