Reference incomes, loss aversion, and physician behavior
Reference incomes, loss aversion, and physician behavior
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DOI:
10.1162/003465303772815817
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发表时间:
2003-11-01
影响因子:
8
通讯作者:
Zeckhauser, RJ
中科院分区:
文献类型:
--
作者:
Rizzo, JA;Zeckhauser, RJ
We examine the effects of reference income on the behavior of young male physicians. Using a unique panel of data, we relate physicians' reference and actual incomes to their subsequent income growth. Reference income has a strong positive effect on subsequent income for physicians who are below their reference points, but not for physicians who are at or above their reference points. Loss aversion, which posits a kink in utility at the reference point, explains this puzzling pattern. Physicians respond strongly to shortfalls from the reference point-they take unappealing actions to boost earnings-because the marginal utility of income is steep in that range. Competing prominent theories, tested here, fail to explain these relationships.