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 …

Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as … myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating …

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 …

Loss aversion has been shown to be an important driver of people’s investment decisions. Encouraged by regulators …, financial institutions are in search of ways to incorporate clients’ loss aversion in their risk classifications. The most … critical obstacle appears to be the lack of a valid measurement method for loss aversion that can be straightforwardly …