Year: 2025
Type: erratum
Abstract: We report and correct a coding error in the estimates of loss aversion in Blake et al. (2021, hereafter BCW) that were based on a representative sample of just over four thousand respondents to a survey in the United Kingdom.The original headline result was that the disutility of a loss of £500 was 2.41 times the utility of a gain of £500.The corrected result is a ratio of 1.80.In this correction, we explain briefly the error (full details of the model are in BCW).The estimates of loss aversion were based upon the iso-elastic form of the value function, namely:where x is the gain if positive and loss if negative.The parameter α measures risk attitude in the domain of gains; similarly, the parameter β measures risk attitude in
Source: Journal of Risk and Uncertainty
Authors: David Blake, Edmund Cannon, Douglas Wright
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,090
OpenAlex ID: W4415566623