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Loss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, "the most significant contribution of psychology to behavioral economics" (Kahneman, 2011, p. 300). It has powerful...
Persistent link: https://www.econbiz.de/10014540403
Loss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, "the most significant contribution of psychology to behavioral economics" (Kahneman, 2011, p. 300). It has powerful...
Persistent link: https://www.econbiz.de/10014467841
before the uncertainty is unresolved, thus a larger donation is required to maintain a positive image. This has implications …
Persistent link: https://www.econbiz.de/10011345573
Climate change is one of the most pressing challenges in current environmental policy. Appropriate policies intended to stimulate efficient adaptation and mitigation should not exclusively rely on the assumption of the homo oeconomicus, but take advantage of well-researched alternative...
Persistent link: https://www.econbiz.de/10010327236
It is common in studies of individual choice behavior to report averages of the behavior under consideration. In the social sciences the mean is, indeed, often the quantity of interest, but at times focusing on the mean can be misleading. For example, it is well known in labor economics that...
Persistent link: https://www.econbiz.de/10010334258
products' actual performance. However, what is the effect of uncertainty in expectations? This paper develops a novel …. Based on this model, uncertainty shifts subjective reference points upward. That is, uncertainty increases the performance … level at which customers switch from being dissatisfied to being satisfied. Furthermore, uncertainty has an attenuating …
Persistent link: https://www.econbiz.de/10014467832
Subjective inferences of probability are critical for decisions involving uncertainty. Recent studies have suggested …, prior studies regarding the influence of extreme outcomes on decisions involving uncertainty have only done so using 50 … found that uncertainty preferences were influenced by outcome extremity and the relative certainty associated with safe …
Persistent link: https://www.econbiz.de/10014519249
risk taking, yet results remain inconclusive. We suspect that this is due to difficulty in capturing risk preferences with … expected utility based tasks. Prospect theory, on the other hand, suggests that risk preferences differ between gains, losses … financial risk taking and 2D:4D, a putative marker of prenatal testosterone exposure, in the framework of prospect theory. We …
Persistent link: https://www.econbiz.de/10012245082
affected people's prospect-theory risk preferences, especially in the loss domain. The panel analysis indicates that with the …
Persistent link: https://www.econbiz.de/10012543998
decision making under uncertainty. For a clear comparison we will stay as close as possible to the framework of SEU suggested …
Persistent link: https://www.econbiz.de/10011853162