In marketing, there has been extensive empirical research to ascertain whether there is evidence of loss aversion as predicted by several reference price preferences theories. Most of that literature nds that there is indeed evidence of loss aversion for many di erent goods. I argue that it is possible that some of that evidence seemingly supporting loss aversion arises because price endogeneit...

Myopic loss aversion was suggested by Benartzi and Thaler (1995) as the main explanation for the equity premium puzzle. We investigate the impact of myopic loss aversion on actual investment decisions of 400 Dutch individual investors, covered by the Dutch National Bank Household Survey. We find that higher loss aversion is associated with a lower share of investments in risky assets. The inves...

This paper investigates the effect of accountability-the expectation on the side of the decision maker of having to justify his/her decisions to somebody else-on loss aversion. Loss aversion is commonly thought to be the strongest component of risk aversion. Accountability is found to reduce the bias of loss aversion. This effect is explained by the higher cognitive effort induced by accountabi...

Loss aversion is considered a general pervasive bias occurring regardless of context or person making the decision. We hypothesized that conscientiousness would predict an aversion to losses in the financial domain. We index loss aversion by the relative impact of income losses and gains on life satisfaction. In a representative German sample (N = 105,558: replicated in a British sample, N = 33...

In this article three different types of loss aversion equilibria in bimatrix games are studied. Loss aversion equilibria are Nash equilibria of games where players are loss averse and where the reference points—points below which they consider payoffs to be losses— are endogenous to the equilibrium calculation. The first type is the fixed point loss aversion equilibrium, introduced in Shalev (...

Abstract Does loss aversion apply to social image concerns? In a laboratory experiment, we first induce in relevant domain, intelligence, through public ranking. second stage, subjects experience change rank and are offered scope for lying improve their final, also publicly reported rank. Subjects who care about decline lie more than those experiencing gains. Moreover, document discontinuity be...