This paper studies the consequences of job loss. While previous literature has relied on mass layof fs and plant …

the loss aversion of a sponsor, who is assumed to be more sensitive to underfunding than overfunding. Through the lens of … prospect theory, we first set up a loss-aversion utility function for a sponsor whose utility depends on the funding ratio in … retirement. We also find that the equity portion of the portfolio increases when a sponsor is less loss-averse or the …

Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as … myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating …