extends Loewenstein's (1988) framing model of intertemporal choice to negative outcomes and uses the resulting predictions to … interpret and integrate the results of three previous studies comparing subjective discount rates (Thaler 1981, Loewenstein 1988 …, Benzion et al. 1989). The new framework reveals previously unidentified linkages among outcome signs, question frames, and …

-to-one correspondence between the behavioral violations of the respective normative theories for the two domains (i.e., expected utility and … propositions about the weight that an attribute receives in both types of multiattribute choice. Specifically, it appears that: (1 … increase all values of an attribute, or if we change the sign of an attribute, from positive to negative, then that attribute …

threshold, segregation is optimal. This threshold increases with the size of the loss and decreases with the degree of loss … aversion of the decision maker. Our formal analysis results in a set of predictions suggesting that the silver lining effect is …) the decision maker is less loss averse. We test and confirm these predictions in two studies of preferences, both in a …

This paper reports on the results of an experimental elicitation at the individual level of all prospect theory …, our data suggest that, for gains at least, the subjective treatment of uncertainty in experience-based and description … more pronounced underweighting of moderate and high probabilities for experience-based decisions. On the contrary, for …

the definition of a unit is altered. For instance, participants holding one piece of chocolate show an endowment effect of … standard size, but so do participants holding one box of chocolates. Yet the box contains about 20 individual pieces of … the property of "unit dependence": the definition of a unit can change, but contingent on any given definition, a …

. Such gains in knowledge have come primarily via laboratory experiments--a missing piece of the puzzle in many cases is … insights gained from one of the most influential lines of behavioral research--framing manipulations--in an attempt to increase … acutely respond to bonuses posed as losses than as comparable bonuses posed as gains. The magnitude of this framing effect is …

diversification across bonds and stocks for a wide range of evaluation horizons, despite the historically high-risk premium of stocks …This study investigates reference-dependent choice with a stochastic, state-dependent reference point. The optimal … reference-dependent solution equals the optimal consumption solution (no loss aversion) if the reference point is selected fully …

first to obtain a parameter-free elicitation of prospect theory's utility function on the whole domain. Our method also …Agrowing body of qualitative evidence shows that loss aversion, a phenomenon formalized in prospect theory, can explain … a variety of field and experimental data. Quantifications of loss aversion are, however, hindered by the absence of a …

the exact relationship between loss aversion and strong risk aversion, a natural index for the degree of loss aversion is …This paper characterizes the conditions for strong risk aversion and second-order stochastic dominance for cumulative … prospect theory. Strong risk aversion implies a convex weighting function for gains and a concave one for losses. It does not …

Prospect theory is currently the main descriptive theory of decision under uncertainty. It generalizes expected utility … by introducing nonlinear decision weighting and loss aversion. A difficulty in the study of multiattribute utility under … prospect theory is to determine when an attribute yields a gain or a loss. One possibility, adopted in the theoretical …