نتایج جستجو برای: loss aversion
تعداد نتایج: 456494 فیلتر نتایج به سال:
We develop a tractable method to estimate multiple prior models of decision-making under ambiguity. In a representative sample of the U.S. population, we measure ambiguity attitudes in the gain and loss domains. We find that ambiguity aversion is common for uncertain events of moderate to high likelihood involving gains, but ambiguity seeking prevails for low likelihoods and for losses. We show...
Risk aversion is a common behavior universal to humans and animals alike. Economists have traditionally defined risk preferences by the curvature of the utility function. Psychologists and behavioral economists also make use of concepts such as loss aversion and probability weighting to model risk aversion. Neurophysiological evidence suggests that loss aversion has its origins in relatively an...
We examine the effects of reference income on the behavior of young male physicians. Using a unique panel of data, we relate each physician’s reference and actual incomes to their subsequent income growth. Reference income has a strong positive effect on subsequent income for physicians who are below their reference points, but not for physicians who are at or above their reference points. Loss...
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...
Downside loss averse preferences have seen a resurgence in the portfolio management literature. This is due to the increasing usage of derivatives in managing equity portfolios, and the increased usage of quantitative techniques for bond portfolio management. We employ the lower partial moment as a risk measure for downside loss aversion, and compare mean-variance (M-V) and mean-lower partial m...
When designing a contest to motivate effort by salespeople, service employees, franchisees or product development teams, one of the key questions faced by managers is: What should be the optimal proportion of winners and losers? Prevailing marketing theory predicts that the proportion of winners in a contest should always be lower than the proportion of losers. Not only has this theory not been...
Some insurance markets are characterized by “advantageous selection”, that is, ex-post risk and coverage are negatively correlated. We show that expectation-based loss aversion as in Kőszegi and Rabin (2006, 2007) provides a natural explanation for this phenomenon when agents face modest-scale risks. More exposure to risk has two competing effects on an agent’s willingness to pay for insurance:...
The ubiquitous and intense nature of stress responses necessitate that we understand how they affect decision-making. Despite a number of studies examining risky decision-making under stress, it is as yet unclear whether and in what way stress alters the underlying processes that shape our choices. This is in part because previous studies have not separated and quantified dissociable valuation ...
Little is known about the neural systems that subserve human loss aversion. A recent neuroimaging study by Tom, Poldrack and colleagues reports that this pattern of behaviour is directly tied to the greater sensitivity of the brain to potential losses compared with potential gains and uncovers a brain network whose activity increases with potential gains and decreases with potential losses. The...
This paper investigates the coordination of dual-channel supply chain under quality control with a loss-averse manufacturer and retailer. Facing various uncertain factors, members tend to show loss aversion, which makes their actual decision deviate from optimal without considering aversion. Therefore, aversion effect function is applied characterize members. Besides, control, utility model con...
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