We consider two famous phenomena from behavioral economics: loss aversion (based on prospect theory), and anchoring …, for the role they played in the pricing of commercial property in the U.S. during the 2000s decade. We find that loss … at least as much loss aversion behavior as less experienced or smaller firms. We extend earlier research by examining how …

estate that loss aversion affects seller behavior in real estate markets. Consistent with prospect theory, we find that … losses loom larger than gains. We also compare loss aversion amongst the different investor types and our results are … indicative of a lower degree of loss aversion amongst private investors as compared to others, particularly institutional …

sensitivity to both gain and loss values in their decision. Further analyses show that specifically participants with higher …

: they are all best answered on the basis of loss aversion. Psychological studies have established that people do not … to some reference point, and losses ordinarily loom larger than gains. Loss aversion thus explains fundamental … compatibility between loss aversion and the law. One, evolutionary theory focuses on plaintiff’s behavior. Another theory focuses on …

Loss aversion is traditionally defined in the context of lotteries over monetary payoffs. This paper extends the notion … of loss aversion to a more general setup where outcomes (consequences) may not be measurable in monetary terms and people … may have fuzzy preferences over lotteries, i.e. they may choose in a probabilistic manner. The implications of loss …

This project examines the role of heterogeneity in loss aversion for identifying models of expectations-based reference … dependence (Kőszegi and Rabin, 2006, 2007) (KR). Different levels of loss aversion lead to different signs for comparative … loss aversion types. Recognizing heterogeneity in loss aversion allows us to reliably recover the KR model's central …

decisions frequently (e.g., one as opposed to several decisions at a time), a phenomenon dubbed "myopic loss aversion" by … reversed. The results cannot be explained by mental accounting or loss aversion but are consistent with the hypothesis that …

Loss aversion has been shown to be an important driver of people’s investment decisions. Encouraged by regulators …, financial institutions are in search of ways to incorporate clients’ loss aversion in their risk classifications. The most … critical obstacle appears to be the lack of a valid measurement method for loss aversion that can be straightforwardly …

Myopic loss aversion (MLA) has been proposed as an explanation for the equity premium puzzle, and a number of …

Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention … or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the … expected profit maximizing loss probability within an expected utility framework. We then use Köszegi and Rabin's (2006, 2007 …