Business models often transform due to adaptation in response to external changes. However, relatively little is known about what causes these types of adaptations. We suggest that threat-rigidity as well as prospect theory have the potential to explain what causes business model adaptation in...

The aim of this study is to analyze the factors that influence consumer referents or reference points and their interaction during the decision-making process, along with the principles of prospect theory in the metaverse with market and retail examples. We conducted an integrative literature...

We present a meta-analysis of prospect theory (PT ) parameters, summarizing data from 166 papers reporting 812 estimates. These parameters capture risk-taking propensities, thus holding interest beyond PT. We develop an inverse-variance weighted method that accounts for correlations in PT...

Paying it forward" is a behavior in which people help someone else because they were helped in the past. Although experimental evidence exists that indicates that real human beings often "pay-it-forward" even in the face of free-rider risks, the theoretical basis for the evolution of this...

We evaluate whether machine learning methods can better model excess portfolio returns compared to the standard regression-based strategies generally used in the finance and econometric literature. We examine 17 benchmark factor model specifications based on Expected Utility Theory and theory...

This paper investigates a dynamic liability-driven investment policy for defined-benefit (DB) plans by incorporating 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...

Expected returns, variances, betas, and alphas are all non-linear functions of the investment horizon. This seems to be a fatal conceptual problem for the capital asset pricing model (CAPM), which assumes a unique common horizon for all investors. We show that under the standard assumptions, the...

The association between emotions and decision-making is evident. Our article aims to demonstrate, for individual investors, the development of negative emotional charges on stock markets in a perceived negative trend. The research question concerns how negative emotions may be associated with...

Are the effects of tax aversion on labor supply symmetric? In a real-effort online experiment, participants are exposed to manipulated wages and taxes after first experiencing the same reference wage. We find no significant differences in their productivity; however, we find significant...

This paper examines how priming and information about inequality affect support for redistribution. Using a large-scale randomized survey experiment in Germany, we vary both the focus (top vs. bottom of the income distribution) and the delivery (subtle priming vs. factual information) of...

Organizing collective action in the face of climate change is one of the grand challenges of our time. Social movements and their approach to framing climate change are pivotal, as they are tasked with the role of challenging and redirecting dominant beliefs and narratives. Recent research...

The Model of Intuitive Morality and Exemplars (MIME) suggests that news audiences, including investors, evaluate news based on their moral frames, and that these moral evaluations shape behavior. We extracted moral signals from 382,185 news articles across an 8-month period and examined their...