Week 5-7 - Prospect Theory Related Biases Flashcards
1
Q
What is Reference Dependency?
A
It refers to the tendency of individuals to evaluate outcomes, choices, and gains or losses relative to a reference point
2
Q
Application of Reference Dependency and their Conclusion
A
Camerer et al. (1997)
Taxi drivers
3
Q
What is the impact of Reference Dependency on financial decisions?
A
