Aspiration level effects: An empirical investigation
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Success, survive or escape? Aspirations and poverty traps
2017, Journal of Economic Behavior and OrganizationCitation Excerpt :These features give rise to a discontinuity in the utility function for aspiration levels and a kinked utility function under loss aversion. The presence of aspirational levels in risky projects has been found in a number of experimental and empirical studies (see e.g., Holthausen, 1981; Mezias, 1988; Langer and Weber, 2001; Mezias et al., 2002). There is also a growing literature examining aspirations in developing countries.
Risk taking of executives under different incentive contracts: Experimental evidence
2014, Journal of Economic Behavior and OrganizationCitation Excerpt :There is, however, a lack of empirical evidence on this point, and the conclusion holds true only as long as one assumes that executives maximize expected utility with a concave utility function, i.e. they are risk averse over the whole probability space. People's risk attitudes have, however been found to vary widely over the probability and outcome space (Abdellaoui, 2000; Mezias, 1988; Piron and Smith, 1995; Wu and Gonzalez, 1996)—a finding that has also been shown to hold for large firms (Chou et al., 2009; Fiegenbaum, 1990). In the following we thus adopt prospect theory as a descriptive theory of choice (Tversky and Kahneman, 1992).
Performance targets, effort and risk-taking
2010, Journal of Economic PsychologyChapter 18 Agent Learning Representation: Advice on Modelling Economic Learning
2006, Handbook of Computational EconomicsPursuit of relative utility and division of labor
1996, Journal of Comparative EconomicsLearning from experience, reference points, and decision costs
1995, Journal of Economic Behavior and Organization
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I would like to thank my colleagues whose helpful comments at various seminars have been invaluable. I am indebted to Terry Shevlin for his extensive help in preparing the data for this study, to George Foster for allowing me to use this data set, to Theresa Lant, and Jim March for their comments on numerous drafts as this work progressed, and to Richard Day for his superb editorial assistance. Comments on earlier drafts by Bill Beaver, Jon Bendor, Keith Weigelt, and an anonymous reviewer are acknowledged gratefully.