Results 11 to 20 of about 2,812,788 (283)
Risk Aversion, Loss Aversion, and the Demand for Insurance [PDF]
Risks, 2018 In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point.
Louis Eeckhoudt +2 more
doaj +5 more sources
Performance measurement with loss aversion [PDF]
Journal of Asset Management, 2005 We examine a simple measure of portfolio performance based on prospect theory, which captures not only risk and return but also reflects differential aversion to upside and downside risk. The measure we propose is a ratio of gains to losses, with the gains and losses weighted (if desired) to reflect risk-aversion for gains and risk-seeking for losses ...
Gordon Gemmill +2 more
openaire +6 more sources
Revise the Belief in Loss Aversion [PDF]
Frontiers in Psychology, 2019 Sumitava Mukherjee
doaj +5 more sources
Loss AversionLoss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, "the most significant contribution of psychology to behavioral economics" (Kahneman, 2011, p. 300). It has powerful implications for decision theory and has been fruitfully applied in
Imai, Taisuke, Schmidt, Klaus
core +6 more sources
Loss aversion and market crashes. [PDF]
Econ Model, 2020 This study proposes a rational expectation equilibrium model of stock market crashes with information asymmetry and loss averse speculators. We obtain a state-dependent linear optimal trading strategy, which makes the equilibrium price tractable. The model predicts nonlinear market depth and the result that small shocks to fundamentals (e.g., supply or
Ouzan S.
europepmc +4 more sources
Student performance and loss aversion* [PDF]
The Scandinavian Journal of Economics, 2022 AbstractWe match data on performance in a multiple‐choice examination with data on risk preferences from a classroom experiment. Students who are more loss averse leave more questions unanswered and perform worse in the exam when an incorrect answer is penalized compared with no answer. Thus, loss aversion parameters extracted from lottery choices in a
Karle, Heiko +2 more
openaire +3 more sources
Negative Voters? Electoral Competition with Loss-Aversion [PDF]
, 2020 This paper studies the effect of voter loss-aversion in preferences over both candidate policy platforms and candidate valence on electoral competition.
Ben Lockwood (8627094) +1 more
core +6 more sources
The neural dynamics of loss aversion. [PDF]
Imaging Neurosci (Camb), 2023 Abstract In human decision-making under risk, loss is typically valued more than the same amount of gain, a behavioral phenomenon known as loss aversion, which suggests that gain and loss are evaluated differently in the brain. Most previous neuroimaging studies focused on the brain regions that show differential responses to losses ...
Nie S, Wang M, Li J, Luo H, Zhang H.
europepmc +4 more sources
Loss Aversion in Politics [PDF]
American Journal of Political Science, 2019 Abstract We study loss aversion in elections by investigating a median voter model (full convergence in a two‐candidate election) and a model of partial divergence of policy proposals. First, we show a status quo bias, an endowment effect, and a moderating effect of policies.
Alesina A., Passarelli F.
openaire +5 more sources
Amygdala–prefrontal connectivity modulates loss aversion bias in anxious individuals
NeuroImage, 2020 Anxious individuals tend to make pessimistic judgments in decision making under uncertainty. While this phenomenon is commonly attributed to risk aversion, loss aversion is a critical but often overlooked factor. In this study, we simultaneously examined
Pengfei Xu +9 more
doaj +1 more source