Work

How to make loss aversion disappear and reverse: Tests of the decision by sampling origin of loss aversion.

Year: 2014

Type: article

Abstract: One of the most robust empirical findings in the behavioral sciences is loss aversion--the finding that losses loom larger than gains. We offer a new psychological explanation of the origins of loss aversion in which loss aversion emerges from differences in the distribution of gains and losses people experience. In 4 experiments, we tested this proposition by manipulating the range of gains and losses that individuals saw during the process of eliciting their loss aversion. We were able to find loss aversion, loss neutrality, and even the reverse of loss aversion.

Source: Journal of Experimental Psychology General

DOI: 10.1037/xge0000039

Authors: Lukasz Walasek, Neil Stewart

Institution: University of Warwick

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,686

Funders: Leverhulme Trust, Economic and Social Research Council