Loss Aversion and Welfare Economics

A volume of recent experimental evidence suggests that individual preferences may not be independent of the consumer's vantage point. In particular agents may suffer from loss aversion (also known as the endowment effect and status quo bias). Allocations which appear desirable ex ante may therefore not be so ex post which poses considerable problems for the traditional propositions of welfare economics.

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Year of publication:	1998
Authors:	Munro, A.
Institutions:	School of Economics, University of East Anglia
Subject:	CONSUMERS \| SOCIAL WELFARE

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Series:	University of East Anglia - Economics Research Centre.
Type of publication:	Book / Working Paper
Notes:	23 pages
Classification:	D11 - Consumer Economics: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005671764