| Acknowledgements | 5 |
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| Contents | 6 |
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| List of Figures | 9 |
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| List of Tables | 11 |
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| 1 Introduction | 13 |
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| 1.1 Related Work and Fields of Research | 17 |
| 1.2 General Background | 22 |
| 1.3 Overview and Structure | 24 |
| 2 Theories on Preferences | 27 |
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| 2.1 Microeconomic Modeling of Preferences | 33 |
| 2.2 Prospect Theory | 45 |
| 2.3 Preference Construction and Stabilization | 60 |
| 2.4 Neural Basis of Preferences | 74 |
| 2.5 De Gustibus non est Disputandum | 78 |
| 3 Preferences in Negotiations | 85 |
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| 3.1 Negotiations | 86 |
| 3.2 Origin of Reference Points | 104 |
| 3.3 The Attachment Effect in Negotiations | 110 |
| 4 Internet Experiment | 123 |
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| 4.1 Experimental Design1 | 124 |
| 4.2 Experimental Results | 144 |
| 4.3 Modifications of the Experiment Design | 148 |
| 5 Laboratory Experiment | 152 |
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| 5.1 Experimental Design | 153 |
| 5.2 Foundations of the Analysis | 181 |
| 5.3 Non-Parametric Analysis | 190 |
| 5.4 Parametric Analysis | 217 |
| 5.5 Summary of Results | 233 |
| 6 Conclusions and Future Work | 235 |
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| 6.1 Summary of Contribution and Review of Work | 236 |
| 6.2 Limitations of the Present Work | 246 |
| 6.3 Future Work | 251 |
| References | 254 |
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| List of Abbreviations and Symbols | 276 |
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| Abbreviations | 276 |
| Symbols | 277 |