  This paper studies the advance-purchase game when a consumer has belief-based
loss-averse preferences, introducing a novel perspective by incorporating
reference updating. It demonstrates that loss aversion increases the consumer's
willingness to pre-purchase. Moreover, the paper endogenizes the seller's
price-commitment behavior in the advance-purchase problem. The analysis reveals
that the seller will commit to his spot price even with no obligation to do so,
a behavior previously assumed in the literature.
