Masiero, Lorenzo Hensher, David A. 2010-01-04 It is widely recognized that individual decision making is subject to the evaluation of gains and losses around a reference point. The estimation of discrete choice models increasingly use data from stated choice experiments which are pivoted around a reference alternative. However, to date, the specification of a reference alternative in transport studies is fixed, whereas it is common to observe individuals adjusting their preferences according to a change in their reference point. This paper focuses on individual reactions, in a freight choice context, to a negative change in the reference alternative values, identifying the behavioural implications in terms of loss aversion and diminishing sensitivity. The results show a significant adjustment in the valuation of gains and losses around a shifted reference alternative. In particular, we find an average increase in loss aversion for cost and time attributes, and a substantial decrease for punctuality. These findings are translated to significant differences in the willingness to pay and willingness to accept measures, providing supporting evidence of respondents’ behavioural reaction. application/pdf https://susi.usi.ch/global/documents/318204 https://localhost:5000/ark:/12658/srd1318204 https://susi.usi.ch/documents/318204/files/wp1005.pdf eng info:eu-repo/semantics/altIdentifier/ark/12658/srd1318204 info:eu-repo/semantics/openAccess License undefined Willingness to pay Gains and losses Freight choice Reference alternative info:eu-repo/classification/udc/33 Shift of reference point and implications on behavioral reaction to gains and losses http://purl.org/coar/resource_type/c_816b