Loss Aversion Is an Affective Forecasting Error

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Loss aversion is an affective forecasting error.

Loss aversion occurs because people expect losses to have greater hedonic impact than gains of equal magnitude. In two studies, people predicted that losses in a gambling task would have greater hedonic impact than would gains of equal magnitude, but when people actually gambled, losses did not have as much of an emotional impact as they predicted. People overestimated the hedonic impact of los...

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ژورنال

عنوان ژورنال: Psychological Science

سال: 2006

ISSN: 0956-7976,1467-9280

DOI: 10.1111/j.1467-9280.2006.01760.x