An Application Framework for the Loss Aversion Distribution: Insights for Marketing, Education, and Digital Adoption
Year: 2025
Type: article
Abstract: This paper introduces a structured framework for applying the Loss Aversion Distribution (LAD) model, a novel approach to understanding time-sensitive decision-making behaviors influenced by loss aversion. The LAD model provides actionable insights for industries by capturing how perceived value diminishes over time, optimizing pricing strategies, improving student performance, and enhancing digital adoption within organizations. Specifically, LAD is applied to consumer pricing strategies, helping businesses determine optimal discounting approaches for perishable goods based on consumers’ loss-averse purchasing behavior; student study behavior, identifying patterns in procrastination and urgency before final examinations to support targeted educational interventions; and digital adoption in workplaces, addressing employees' resistance to new technologies by predicting adoption trends and informing change management strategies. By providing a generalizable and adaptable framework, LAD bridges the gap between behavioral economics and practical decision-making, making it a valuable tool for businesses, educators, and policymakers seeking to enhance outcomes in time-sensitive environments.
DOI: 10.5539/ijbm.v20n2p1
Authors: Daniel Koh, Zulklifi Jalil
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4407178615