Loss Averse Behavior

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 2005
Volume: 31
Issue: 3
Pages: 301-325

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A behavioral condition of loss aversion is proposed and tested. Forty-nine students participated in experiments on binary choices among lotteries involving small scale real gains and losses. At the aggregate level, a significant proportion of the choices are in the direction predicted by loss aversion. Individuals can be classified as loss averse (28 participants), gain seeking (12), and unclassified (9). A comparison with risk behavior for binary choices on lotteries involving only gains shows that risk attitudes vary across these domains of lotteries. A gender effect is also observed: proportionally more women are loss averse. In contrast to the predictions of comonotonic independence, the size of common outcomes has systematic influence on choice behavior. Copyright Springer Science + Business Media, Inc. 2005

Technical Details

RePEc Handle
repec:kap:jrisku:v:31:y:2005:i:3:p:301-325
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24