A new explanation of loss aversion and the endowment effect is proposed. The model is based on the uncertain values of … mechanism is exploitation aversion. It is shown that a knowledge dependent version of the loss aversion curve can be derived …

In this paper, we propose and examine the de-biasing effect of self-distancing on loss aversion. In a laboratory … the description of the payoff outcomes. Our results show that people exhibited a lower degree of loss aversion when the … responsive than were males to these subtle linguistic cues that the gender difference in loss aversion was closed in the two self …

I examine whether stochastic contracts benefit the principal in the setting of moral hazard and loss aversion …. Incorporating that the agent is expectation-based loss averse and allowing the principal to add noise to performance signals, I find … optimal deterministic contract for almost any degree of loss aversion. The optimal stochastic contract pays a high wage …