Loss aversion, the fact that losses have a greater impact than gains, is a fundamental property of behavioral accounts of choice. In this paper, we suggest four possible characterizations of the relative impact of losses and gains: (1) It could be a constant, such as the much cited value of 2,...

We develop a methodology for the measurement of the parameters of cumulative prospect theory and time discounting models based on tools from the preference measurement literature. These parameters are typically elicited by presenting decision makers with a series of choices between hypothetical...

We explored the effect of attribute framing on choice, labeling charges for environmental costs as either an earmarked tax or an offset. 898 Americans chose between otherwise identical products or services, where one option included a surcharge for emitted CO2. The cost framing changed...