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«*This paper is a revised and shortened version of a paper with the same title, published in the Quarterly Journal of Economics, May 1997, 407-441. It ...»

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Ross, William T., Jr., and Itamar Simonson, " Evaluations of Pairs of Experiences: A Preference for Happy Endings," Journal of Behavioral Decision Making, IV ( 1991), 155-61.

Samuelson, William, and Richard Zeckhauser, "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, I (1988), 39-60.

Shea, John, "Union Contracts and the Life-Cycle/Permanent-Income Hypothesis," American Economic Review, LXXXV (1) (1995), 186-200.

Shefrin, Hersh M., and Richard H. Thaler, "Mental Accounting, Saving, and Self-Control," in G.

Loewenstein and J. Elster, eds., Choice Over Time (New York: Russell Sage Foundation Press, 1992).

Thaler, Richard. `Mental Accounting and Consumer Choice,’ Marketing Science, IV (1985). 199Thaler, Richard, Amos Tversky, Daniel Kahneman, and Alan Schwartz. `How Myopic Loss Averse Investors Learn From Experience,’ Quarterly Journal of Economics (in press).

Tversky, Amos, and Daniel Kahneman, "Loss Aversion in Riskless Choice: A Reference-Dependent Model," Quarterly Journal of Economics, CVI (1991), 1039-61.

Wales, Terence J. "Estimation of a Labor Supply Curve for Self-Employed Business Proprietors," lnternational Economic Review, XIV(l) (1973), 69-80.

Weber, Martin and Colin F. Camerer. `The Disposition Effect in Securities Trading: An Experimental Analysis’, Journal of Economic Behavior and Organization, 33, January 1998, 167

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Note: Dependent variable is the log of hours worked. Other independent variables (not shown) are high temperature, rain, and dummy variables for during-the-week shift, night shift, and day shift.

Standard errors are in parentheses. Instruments for the log hourly wage include the summary statistics of the distribution of hourly (log) wages of other drivers on the same day and shift (the 25th, 50th, and 75th percentiles).

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Note: See note to Table II. Fleet cabs are rented daily, leased cabs are rented by the week or month, and owned cabs are owned by the drivers.

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