On several occasions, I have observed one of my colleagues insist on taking a special trip to the movie rental place in order to return a movie that would otherwise be overdue when he could have just waited to the next day and returned the movie on his way to work. The late fee is $1. If I called this same colleague (on a night when he did not have a movie due) with “special information” that there was $1 hidden behind one of the movies in the movie place, and that he can be virtually assured of getting the dollar if he comes by now, he would never think it worth it to take that special trip for $1. Can you explain my colleague’s behavior using reference-based preferences with loss aversion?