We present results from a highly powered online experiment with 937 participants on Amazon Mechanical Turk (MTurk) that examined whether MTurkers exhibit myopic loss aversion (MLA). The consisted of measuring MLA-compliant behavior in two between-subjects treatments differed only regarding the risk profile risky asset employed. found no statistically significant evidence for any profiles among ...

Abstract In this paper, we investigate how loss aversion affects people’s behavior in private litigation. We find that a loss-averse plaintiff demands higher settlement for intermediate claims to maintain her threat proceed trial following rejection compared loss-neutral plaintiff. For larger claims, lower offer increase the probability as pains extra trial. also various policies affect litigan...

This paper explores whether there is one unifying concept of utility, as commonly assumed in applied and empirical economics, or whether utility is context-specific, as typically assumed in economic theory. We present a new method to measure the utility for gains, the utility for losses, and loss aversion both for risk and for time. Utility under risk was significantly more curved than utility ...

This article discusses the determination of risk capital based on “aversion” functions. Aversion functions weigh different outcomes according to perceived severity. Many practical and popular risk measures are usefully viewed in terms of aversion functions including those arising from distortion operators and risk margin loadings. The approach of this paper builds on, unifies,and extends existi...