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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
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
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
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
. Strikingly, we find that even when there is an objectively correct answer independently of attitudes toward risk, the same …-independent numerical magnitudes play a minor role. When correct answers depend on subjective attitudes toward risk, differences in expected …
Persistent link: https://www.econbiz.de/10012056813
, length, etc), for economic decisions under risk the appropriate dimension remains unclear, with candidates including payoff …
Persistent link: https://www.econbiz.de/10012244619
to response times. However, for economic decisions under risk, these effects are largely untested, because models used to …
Persistent link: https://www.econbiz.de/10013164128
Using a unique experimental data set, we investigate how asymmetric legal rights shape bargainers' aspiration levels through moral entitlements derived from equity norms and number prominence. Aspiration formation is typically hard to observe in real life. Our study involves 15 negotiations from...
Persistent link: https://www.econbiz.de/10011852710
Experimentally observed deviations of behavior from game theoretic predictions suggest that fairness does influence decision making. Fairness in the sense of equality has become an essential element of economic models aiming at explaining actual behavior (cf. Fehr and Schmidt, 1999; Bolton and...
Persistent link: https://www.econbiz.de/10010317630
The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in mathematical challenges: simple extensions and...
Persistent link: https://www.econbiz.de/10010301357