Showing 1 - 10 of 162
We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion …, utilizing an asset integration protocol designed to ensure that a loss of cash provided by the experimenter is viewed as a real … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology …
Persistent link: https://www.econbiz.de/10011997618
examine how human beings respond to major financial losses. University ethics boards would not allow this kind of huge-loss …. Participants lose any cash placed on a wrong answer. We find evidence of risk reduction after people suffer a loss in the previous … decision round. A prior financial loss of £10,000 is estimated to increase the propensity to fully diversify by 6 percentage …
Persistent link: https://www.econbiz.de/10013367589
We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion … incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on …
Persistent link: https://www.econbiz.de/10010379927
. -- Reference points ; expectations ; loss aversion ; risk aversion ; disappointment ; experiment …
Persistent link: https://www.econbiz.de/10003794106
Loss aversion can occur in riskless and risky choices. Yet, there is no evidence whether people who are loss averse in … riskless choices are also loss averse in risky choices. We measure individual-level loss aversion in riskless choices in an … manufacturer). All subjects also participate in a simple lottery choice task which arguably measures loss aversion in risky choices …
Persistent link: https://www.econbiz.de/10003586547
Loss aversion, the fact that losses have a greater impact than gains, is a fundamental property of behavioral accounts … systematic individual difference, with some individuals more or less loss aversion, (3) it could be a property of the attribute … large sample of auto buyers using an experiment which allows us to measure loss aversion, at the individual level for …
Persistent link: https://www.econbiz.de/10003361690
to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a …. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather …
Persistent link: https://www.econbiz.de/10012549727
loss aversion or by violations of the Reduction Axiom. We validate the task and test its robustness in a large … gap that often characterizes choices under uncertainty by means of a higher loss rather than risk aversion. -- risk … aversion ; loss aversion ; elicitation method …
Persistent link: https://www.econbiz.de/10009568710
This paper bridges the financial market and the marriage market using a reference-dependent mechanism. Male-biased sex ratios induce families with sons to hold more risky assets, since competitive marital payment in a tight market raises the reference level of marriage expenditure for such...
Persistent link: https://www.econbiz.de/10011607605
Analysing the US Panel Study of Income Dynamics, we present a new empirical method to investigate the extent to which households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach - termed a deflated fractional ordered probit model -...
Persistent link: https://www.econbiz.de/10011594575