Economics, Econometrics and Finance
4 years ago

Loss Aversion and Endowment Effects Challenge Traditional Economic Assumptions

Économie publique/Public economics
What have we learnt about Loss Aversion and Endowment Effects? Still an anomaly?
Patricio S. Dalton

Paper Summary

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The article explores Loss Aversion and Endowment Effect, which challenge traditional economic theories. These concepts show that people value what they have more than what they could gain, leading to different decisions in buying and selling. Over 20 years of research support these ideas, suggesting they are not just anomalies but important factors in understanding economic behavior.