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sensitivity to both gain and loss values in their decision. Further analyses show that specifically participants with higher …
Persistent link: https://www.econbiz.de/10013332731
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 …
Persistent link: https://www.econbiz.de/10012902808
risk neutral level, regardless of the timing of loss. This violation of expected utility predictions could be explained by …
Persistent link: https://www.econbiz.de/10011867564
For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically — an … effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its … distinguish between MLA and an explanation based on (myopic) loss probability aversion (MLPA). This distinction is important …
Persistent link: https://www.econbiz.de/10013134212
the purchase is complete. I identify loss aversion as an important factor explaining the existence of vertical product … lotteries. I consider a profit-maximizing monopolist serving loss-averse consumers with rational expectations about the lottery … lottery with stochastic and lower expected quality. When consumers are reasonably loss averse, I show that the profit increase …
Persistent link: https://www.econbiz.de/10013364023
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 …
Persistent link: https://www.econbiz.de/10014512884
Previous research suggests that human reaction to risky opportunities reflects two contradicting biases: "loss aversion …", and "limited level of reasoning" that leads to overconfidence. Rejection of attractive gambles is explained by loss … high rate of counterproductive betting even when limited level of reasoning and loss aversion imply no betting. The results …
Persistent link: https://www.econbiz.de/10013076466
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is …
Persistent link: https://www.econbiz.de/10011557745
weighting of the attributes of choice options, while top-down attention is additionally associated with measures of loss …
Persistent link: https://www.econbiz.de/10012510861
preferences and search behavior reinforced our experimental results; that is, loss aversions were not significantly correlated …
Persistent link: https://www.econbiz.de/10012019322