the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …

ante the consumer has to balance attitudes to risk with underlying preferences. We study this problem in the context of … determine the utility gambles, and attitudes to risk evaluate these gambles, in order to choose an optimal consumption gamble …. We study how risk aversion interacts with preferences to determine the direction and size of comparative statics effects …

empirically study the relation between income risk, experimentally elicited loss aversion, and precautionary savings. We do so … subject to substantial income risk. In line with the theoretical predictions, we find that an increase in income risk is … aversion. An accompanying laboratory experiment confirms that an exogenous increase in income risk causally leads to this …

People exercising mental accounting have an additional motive for buying insurance. They perceive a risk of having … insufficient funds available to self-insure. In this way insurance protects the consumption value of the insured asset beyond the …, and explains the observed sensitivity of this aversion to the insurance context. Finally, it predicts a strong impact of …