Topics

Rational Choice and Default Options

Preference Formation, Framing, and the Default Option

Rational Explanations of the Status Quo Bias

History and Notes

Reference Points, Indifference Curves, and the Consumer Problem

An Evolutionary Explanation for Loss Aversion

Rational Choice and Getting and Giving Up Goods

Loss Aversion and the Endowment Effect

Rational Explanations for the Endowment Effect

History and Notes

Biographical Note: Amos N. Tversky

Thought Questions

References

Advanced Concept: The Shape of Indifference Curves with Constant Loss Aversion