As shown by Tversky and Kahneman (1991), framing an outcome as a loss causes individuals to expend extra effort to … loss aversion to encourage student effort. This field experiment endows students with all of the points in the course …

Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention … or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the … expected profit maximizing loss probability within an expected utility framework. We then use Köszegi and Rabin's (2006, 2007 …

We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion … incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on …

is subject to probability weighting and loss aversion, which are two important characteristics of Prospect Theory … fees which could help to explain the BigN audit fee premium. With loss aversion, an auditor is sensitive to the risk of …

correlated. We show that expectation-based loss aversion as in K'oszegi and Rabin (2006, 2007) provides a natural explanation for …

Loss aversion is widely regarded as the most robust and ubiquitous finding in behavioural economics. According to the … loss aversion hypothesis, the subjective value of losses exceeds the subjective value of equivalent gains. One common … cumulative prospect theory, loss aversion is captured by the lambda (λ) parameter, which controls the steepness of the value …

This project examines the role of heterogeneity in loss aversion for identifying models of expectations-based reference … dependence (Kőszegi and Rabin, 2006, 2007) (KR). Different levels of loss aversion lead to different signs for comparative … loss aversion types. Recognizing heterogeneity in loss aversion allows us to reliably recover the KR model's central …

Loss aversion, the principle that losses loom larger than gains, is among the most widely accepted ideas in the social … sciences. The first part of this article introduces and discusses the construct of loss aversion. The second part of this … article reviews evidence in support of loss aversion. The upshot of this review is that current evidence does not support that …