Loss Aversion: Will It Be Greater than the Gain?

Hongren Zhao

doi:10.18282/ff.v9i2.874

Hongren Zhao City University of Macau

Ariticle ID: 874

174 Views, 42 PDF Downloads, 0 revised version Downloads

DOI: https://doi.org/10.18282/ff.v9i2.874

Keywords: Loss Aversion, Science, Gain

Abstract

Loss aversionÂ is one of the most widely accepted ideas in social science, that is, the loss is greater than the gain.Â This paper is divided into four parts. First of all, the construction of loss aversion is introduced and discussed. The second part is about the evidence that supports loss aversion. As a result, the current evidence does not support losses, which are generally more influential than gains. The third part is to solve the following questions: despite the evidence to the contrary, why aversion is still generally accepted as a general principle among social scientists, including consumer psychologists. The aim of the analysis is to link beliefs about loss aversion to more general concepts, such as acceptance and adherence to scientific beliefs. In the last part, how to understand the relative impact of loss and income from the context, and how to broaden the new field of investigation in the field of consumer psychology are discussed.

References

Apostolova-Mihaylova M, Cooper W, Hoyt G, et al. Heterogeneous gener effects under loss aversion in the economics classroom: A field 3. experiment. Southern Economic Journal 2015; 81: 980-994.

Donald B, Goldhaber D, Lanjford H, et al. The effect of certification and preparation on teacher quality. The Future of Children 2007; 1(1): 5-68.

Bibby PA, Ferguson E. The ability to process emotional information predicts loss aversion. Personality and Individual Differences 2011; 51: 263-266.

Colombatto E. The elgar companion to the economics of property rights. Cheltenham, UK: Edward Elgar; 2004.

Ernst C, ThÃ¶ni C. Bimodal bidding in experimental all-Pay auctions. Games 2013; 4: 608-623. doi: 10.3390/g4040608.

Falk A, Fehr E, Huffman D. The power and limits of tournament incentives. Work in Progress 2008.

Nevill AM, Holder RL. Home advantage in sport. Sports Medicine 1999; 28(4): 221-236. doi: 10.2165/00007256-199928040-00001.

Francisco JS, Thomas FG. The rich get richer: Students' discounting of hypothetical delayed rewards and real effortful extra credit. Psychonomic Bulletin & Review 2004; 11(6): 1124-1128. doi: 10.3758/BF03196747.

Sunde U. Heterogeneity and performance in tournaments: A test for incentive effects using professional tennis data. Applied Economics 2009; 41(25-27): 3199-3208. doi: 10.1080/00036840802243789.

Wicker P, Prinz J, Weimar D, Deutscher C, Upmann T. No pain, no gain? effort and productivity in professional soccer. International Journal of Sport Finance 2013; 8(2): 124-139. doi: 10.1016/j.tourman.2012.06.008.