Decision Sciences
a year ago

Loss aversion shapes decisions, impacts society, and drives consumer behavior.

1 view
Advances in Economics Management and Political Sciences
Research on Loss Aversion and Its Formation in Prospect Theory
Ruiyi Gao

Paper Summary

Loss aversion is the idea that people fear losing more than they enjoy gaining. Previous research shows that this concept affects how we make decisions. Three areas where loss aversion is applied are the endowment effect, the winner's curse, and consumer choices. Future studies should consider the unique situations that influence how people react to losses and gains.

Related papers

Economics, Econometrics and Finance
4 years ago

Ownership influences preferences more than previously thought, study finds.

Economic Analysis
2 views
Decision Sciences
4 years ago

New study reveals how fear of loss impacts decision-making

Multi-Criteria Decision
3 views
Theme background image
Social Sciences
6 years ago

Urban relocations in China lead to housing satisfaction and social harmony.

Residential Segregation
Human Connection
Credit Expansion