to a reference point) are a better predictor of behavior than expected utility. In particular, loss aversion is an … important element of such utility functions. We extend games to include loss aversion characteristics of the players. We define … two types of loss-aversion equilibrium, a solution concept endogenizing reference points. The two types reflect different …

, analyzing the effect of differing levels of loss aversion on bargaining outcomes. We find that as with risk aversion, increasing … loss aversion for a player leads to worse outcomes for that player in bargaining situations. An extension of Nash's axioms …

This paper presents an insight into the theoretical and empirical literature of Loss Aversion and Endowment Effect. The … years of successive positive evidence on Loss Aversion and Endowment Effect support the theoretical implications showed in … this paper. I conclude that Loss Aversion and Endowment Effects truly matter and their existence must not be taken into …

that faces a convex tax schedule; and (iii) a firm whose manager is subject to loss aversion. In all these models, and …

, consistent with a model of reference-dependent preferences exhibiting loss aversion and diminishing sensitivity. …