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Ahrens, Steffen; Bitter, Lea; Bosch-Rosa, Ciril - 2020

In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group coordination when there is strategic uncertainty. We compare the choices made by experimental subjects in a minimum effort game. In control sessions, incentives are formulated as a...

Persistent link: https://www.econbiz.de/10012285502

Student performance and loss aversion

Karle, Heiko; Engelmann, Dirk; Peitz, Martin - 2019 - Version: August 21, 2019

In this paper, we match data on student performance in a multiple-choice exam with data on student risk preferences … that are extracted from a classroom experiment. We find that more-loss-averse students leave more questions unanswered and … evidence that loss aversion parameters extracted from lottery choices in a controlled experiment have predictive power in a …

Persistent link: https://www.econbiz.de/10012064831

Loss aversion

Imai, Taisuke; Schmidt, Klaus M. - 2023 - This version: November 21, 2023

Loss aversion postulates that people prefer avoiding losses over acquiring gains of equal size. It is a central part of prospect theory and, according to Daniel Kahneman, “the most significant contribution of psychology to behavioral economics” (Kahneman, 2011, p. 300). It has powerful...

Persistent link: https://www.econbiz.de/10014487321

Expected prices as reference points : theory and experiments

Wenner, Lukas - 2014

have a salient market price or no market price outside of the experiment. …

Persistent link: https://www.econbiz.de/10010407309

What moves households' expectations during a crisis? : evidence from a randomized information experiment

Metiu, Norbert; Stockerl, Valentin - 2024

Using a randomized information experiment embedded in a representative survey, we study households' economic …

Persistent link: https://www.econbiz.de/10015205429

Price dynamics and trader overconfidence

Ahrens, Steffen; Bosch-Rosa, Ciril; Roulund, Rasmus Pank - 2019

Overconfidence is one of the most important biases in financial markets and commonly associated with excessive trading and asset market bubbles. So far, most of the finance literature takes overconfidence as a given, "static" personality trait. In this paper we introduce a novel experimental...

Persistent link: https://www.econbiz.de/10012034133

Intertemporal consumption and debt aversion : a replication and extension

Ahrens, Steffen; Bosch-Rosa, Ciril; Meissner, Thomas - 2022

correlating a new individual index of debt aversion on individual characteristics such as gender, cognitive ability, and risk … aversion. The findings suggest that gender and risk aversion are not correlated with debt aversion. However, cognitive ability …

Persistent link: https://www.econbiz.de/10012799407

Intertemporal consumption and debt aversion : a replication and extension

Ahrens, Steffen; Bosch-Rosa, Ciril; Meissner, Thomas - 2022

Persistent link: https://www.econbiz.de/10013191573

Procurement design with loss averse bidders

Fugger, Nicolas; Gillen, Philippe; Riehm, Tobias - 2019

We show that it is beneficial for a buyer to conduct a multi-stage mechanism if bidders are loss averse. In a first step, we derive a revenue equivalence principle. Fixing the multi-stage structure, the revenue is independent of the chosen payment rule. Secondly, we introduce a simple two-stage...

Persistent link: https://www.econbiz.de/10012146346

School choice and loss aversion

Meisner, Vincent; Wangenheim, Jonas von - 2019

Extensive evidence suggests that participants in the direct student-proposing deferred-acceptance mechanism (DSPDA) play dominated strategies. In particular, students with low priority tend to misrepresent their preferences for popular schools. To explain the observed data, we introduce...

Persistent link: https://www.econbiz.de/10012138798