An Essay on Labor Supply Decisions and Reference Dependent Preferences

Subhajit Pramanik

MPRA Paper from University Library of Munich, Germany

Abstract: This article presents a brief analysis of labor supply decision models using the concept of reference-dependent preference. This reference-dependent preference leads the model towards a behavioral aspect where “GainLoss utility” can be derived from standard “consumption utility” and the reference point is determined endogenously by the economic environment. At the first two sections of the article labor supply decision and reference-dependent preference has been discussed in a brief. Then three models has been discussed where the economists used the concept of reference-dependent preference to make labor supply model decisions.

Keywords: Prospect Theory; Behavioral Economics; Labor Supply Decisions; Reference Dependent Preference. (search for similar items in EconPapers)
JEL-codes: D01 D03 D7 D78 D81 (search for similar items in EconPapers)
Date: 2021-12-02, Revised 2021-12-26
New Economics Papers: this item is included in nep-dcm, nep-ore and nep-upt
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Published in International Research Journal of Modernization in Engineering Technology and Science 1.4(2022): pp. 453-465

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