Nicolau, Juan Luis2024-08-062024-08-062008-05-010210-1521https://hdl.handle.net/10919/120862Based on Tversky and Kahneman's Prospect Theory, we test the existence of reference dependence, loss aversion and diminishing sensitivity in Spanish tourism. To do this, we incorporate the reference-dependent model into a Multinomial Logit Model with Random Parameters -which controls for heterogeneity- and apply it to a sample of vacation choices made by Spaniards. We find that the difference between reference price and actual price is considered to make decisions, confirming that reference dependence exists; that people react more strongly to price increases than to price decreases relative to their reference price, which represents evidence in favor of the loss aversion phenomenon; and that there is diminishing sensitivity for losses only, showing convexity for these negative values.Pages 231-25525 page(s)application/pdfenCreative Commons Attribution 4.0 Internationalprospect theorytourismpricesArticle - Refereed322Nicolau Gonzalbez, Juan [0000-0003-0048-2823]1575-4367