Losses loom more likely than gains: Propensity to imagine losses increases their subjective probability
Author
Abstract
Suggested Citation
DOI: 10.1016/j.obhdp.2012.03.008
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Botond Kőszegi & Matthew Rabin, 2006.
"A Model of Reference-Dependent Preferences,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
- Botond Koszegi & Matthew Rabin, 2004. "A Model of Reference-Dependent Preferences," Method and Hist of Econ Thought 0407001, University Library of Munich, Germany.
- Koszegi, Botond & Rabin, Matthew, 2004. "A Model of Reference-Dependent Preferences," Department of Economics, Working Paper Series qt0w82b6nm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Botond Koszegi & Matthew Rabin, 2005. "A Model of Reference-Dependent Preferences," Levine's Bibliography 784828000000000341, UCLA Department of Economics.
- Shiv, Baba & Huber, Joel, 2000. "The Impact of Anticipating Satisfaction on Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(2), pages 202-216, September.
- Nathalie Etchart-Vincent, 2004.
"Is Probability Weighting Sensitive to the Magnitude of Consequences? An Experimental Investigation on Losses,"
Journal of Risk and Uncertainty, Springer, vol. 28(3), pages 217-235, May.
- Nathalie Etchart-Vincent, 2004. "Is Probability Weighting Sensitive to the Magnitude of Consequences? An Experimental Investigation on Losses," Post-Print hal-03819328, HAL.
- Johnson, Eric J. & Gächter, Simon & Herrmann, Andreas, 2006.
"Exploring the Nature of Loss Aversion,"
IZA Discussion Papers
2015, Institute of Labor Economics (IZA).
- Eric Johnson & Simon Gaechter & Andreas Herrmann, 2006. "Exploring the Nature of Loss Aversion," Discussion Papers 2006-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Daniel Kahneman & Amos Tversky, 2013.
"Prospect Theory: An Analysis of Decision Under Risk,"
World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127,
World Scientific Publishing Co. Pte. Ltd..
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Lyle Brenner & Yuval Rottenstreich & Sanjay Sood & Baler Bilgin, 2007. "On the Psychology of Loss Aversion: Possession, Valence, and Reversals of the Endowment Effect," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(3), pages 369-376, May.
- Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
- Strahilevitz, Michal A & Loewenstein, George, 1998. "The Effect of Ownership History on the Valuation of Objects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(3), pages 276-289, December.
- Harless, David W & Camerer, Colin F, 1994. "The Predictive Utility of Generalized Expected Utility Theories," Econometrica, Econometric Society, vol. 62(6), pages 1251-1289, November.
- Keith M. Marzilli Ericson & Andreas Fuster, 2011. "Expectations as Endowments: Evidence on Reference-Dependent Preferences from Exchange and Valuation Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1879-1907.
- Knetsch, Jack L. & Wong, Wei-Kang, 2009. "The endowment effect and the reference state: Evidence and manipulations," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 407-413, August.
- Mohammed Abdellaoui, 2000. "Parameter-Free Elicitation of Utility and Probability Weighting Functions," Management Science, INFORMS, vol. 46(11), pages 1497-1512, November.
- Carmon, Ziv & Ariely, Dan, 2000. "Focusing on the Forgone: How Value Can Appear So Different to Buyers and Sellers," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(3), pages 360-370, December.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- David A. Welch, 2017. "The Justice Motive in East Asia’s Territorial Disputes," Group Decision and Negotiation, Springer, vol. 26(1), pages 71-92, January.
- Adam J L Harris & Laura de Molière & Melinda Soh & Ulrike Hahn, 2017. "Unrealistic comparative optimism: An unsuccessful search for evidence of a genuinely motivational bias," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-35, March.
- Haim Levy & Moshe Levy, 2021. "Prospect theory, constant relative risk aversion, and the investment horizon," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-21, April.
- Qu, Yi & Khan, Jashim & Su, Yuyang & Tong, Jiao & Zhao, Shuo, 2023. "Impulse buying tendency in live-stream commerce: The role of viewing frequency and anticipated emotions influencing scarcity-induced purchase decision," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Simon Gächter & Eric J. Johnson & Andreas Herrmann, 2022.
"Individual-level loss aversion in riskless and risky choices,"
Theory and Decision, Springer, vol. 92(3), pages 599-624, April.
- Simon Gaechter & Eric Johnson & Andreas Herrmann, 2007. "Individual-Level Loss Aversion In Riskless And Risky Choices," Discussion Papers 2007-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Gächter, Simon & Johnson, Eric J. & Herrmann, Andreas, 2007. "Individual-Level Loss Aversion in Riskless and Risky Choices," IZA Discussion Papers 2961, Institute of Labor Economics (IZA).
- Simon Gaechter & Eric J. Johnson & Andreas Herrmann, 2010. "Individual-level loss aversion in riskless and risky choices," Discussion Papers 2010-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Simon Gaechter & Eric Johnson & Andreas Herrmann, 2007.
"Individual-Level Loss Aversion In Riskless And Risky Choices,"
Discussion Papers
2007-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Simon Gaechter & Eric J. Johnson & Andreas Herrmann, 2010. "Individual-level loss aversion in riskless and risky choices," Discussion Papers 2010-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Simon Gaechter & Eric Johnson & Andreas Herrmann, 2007. "Individual-Level Loss Aversion In Riskless And Risky Choices," Discussion Papers 2007-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Simon Gaechter & Eric J. Johnson & Andreas Herrmann, 2010. "Individual-level loss aversion in riskless and risky choices," Discussion Papers 2010-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Gächter, Simon & Johnson, Eric J. & Herrmann, Andreas, 2007. "Individual-Level Loss Aversion in Riskless and Risky Choices," IZA Discussion Papers 2961, Institute of Labor Economics (IZA).
- Jakusch, Sven Thorsten & Meyer, Steffen & Hackethal, Andreas, 2019. "Taming models of prospect theory in the wild? Estimation of Vlcek and Hens (2011)," SAFE Working Paper Series 146, Leibniz Institute for Financial Research SAFE, revised 2019.
- Ulrich Schmidt & Horst Zank, 2012.
"A genuine foundation for prospect theory,"
Journal of Risk and Uncertainty, Springer, vol. 45(2), pages 97-113, October.
- Ulrich Schmidt & Horst Zank, 2011. "A Genuine Foundation for Prospect Theory," Economics Discussion Paper Series 1114, Economics, The University of Manchester.
- Glimcher, Paul W. & Tymula, Agnieszka A., 2023.
"Expected subjective value theory (ESVT): A representation of decision under risk and certainty,"
Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 110-128.
- Glimcher, Paul W. & Tymula, Agnieszka A., 2016. "Expected Subjective Value Theory (ESVT): A Representation of Decision Under Risk and Certainty," Working Papers 2016-08, University of Sydney, School of Economics, revised Jan 2017.
- Arjan Verschoor & Ben D’Exelle, 2022. "Probability weighting for losses and for gains among smallholder farmers in Uganda," Theory and Decision, Springer, vol. 92(1), pages 223-258, February.
- González-Jiménez, Víctor, 2024. "Incentive design for reference-dependent preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 493-518.
- Park, Hyeon, 2023. "A general equilibrium model of dynamic loss aversion," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
- Dertwinkel-Kalt, Markus & Köster, Mats, 2017.
"Salient compromises in the newsvendor game,"
Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 301-315.
- Dertwinkel-Kalt, Markus & Köster, Mats, 2017. "Salient compromises in the newsvendor game," DICE Discussion Papers 253, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Nathalie Etchart-Vincent, 2009.
"Probability weighting and the ‘level’ and ‘spacing’ of outcomes: An experimental study over losses,"
Journal of Risk and Uncertainty, Springer, vol. 39(1), pages 45-63, August.
- Nathalie Etchart-Vincent, 2009. "Probability weighting and the 'level' and 'spacing' of outcomes: An experimental study over losses," Post-Print hal-00395876, HAL.
- Brown, Thomas C. & Morrison, Mark D. & Benfield, Jacob A. & Rainbolt, Gretchen Nurse & Bell, Paul A., 2015. "Exchange asymmetry in experimental settings," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 104-116.
- Marcello Basili & Alain Chateauneuf & Fulvio Fontini, 2005.
"Choices Under Ambiguity With Familiar And Unfamiliar Outcomes,"
Theory and Decision, Springer, vol. 58(2), pages 195-207, March.
- Marcello Basili & Alain Chateauneuf & Fulvio Fontini, 2004. "Choices under ambiguity with familiar and unfamiliar outcomes," Cahiers de la Maison des Sciences Economiques b04115, Université Panthéon-Sorbonne (Paris 1).
- Marcello Basili & Alain Chateauneuf & Fulvio Fontini, 2005. "Choices under ambiguity with familiar and unfamilar outcomes," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00271349, HAL.
- Marcello Basili & Alain Chateauneuf & Fulvio Fontini, 2005. "Choices under ambiguity with familiar and unfamilar outcomes," Post-Print hal-00271349, HAL.
- Laurent Denant-Boemont & Olivier L’Haridon, 2013.
"La rationalité à l'épreuve de l'économie comportementale,"
Revue française d'économie, Presses de Sciences-Po, vol. 0(2), pages 35-89.
- Laurent Denant-Boèmont & Olivier l'Haridon, 2013. "La rationalité à l’épreuve de l’économie comportementale," Economics Working Paper Archive (University of Rennes & University of Caen) 201323, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
- Laurent Denant-Boèmont & Olivier L’haridon, 2013. "La rationalité à l'épreuve de l'économie comportementale," Post-Print halshs-00921070, HAL.
- Sautua, Santiago I., 2017. "Does uncertainty cause inertia in decision making? An experimental study of the role of regret aversion and indecisiveness," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 1-14.
- Peter Brooks & Simon Peters & Horst Zank, 2014.
"Risk behavior for gain, loss, and mixed prospects,"
Theory and Decision, Springer, vol. 77(2), pages 153-182, August.
- Peter Brooks & Simon Peters & Horst Zank, 2011. "Risk Behaviour for Gain, Loss and Mixed Prospects," Economics Discussion Paper Series 1123, Economics, The University of Manchester.
- Alex Markle & George Wu & Rebecca White & Aaron Sackett, 2018. "Goals as reference points in marathon running: A novel test of reference dependence," Journal of Risk and Uncertainty, Springer, vol. 56(1), pages 19-50, February.
- José Lara Resende & George Wu, 2010. "Competence effects for choices involving gains and losses," Journal of Risk and Uncertainty, Springer, vol. 40(2), pages 109-132, April.
- Glenn W. Harrison & J. Todd Swarthout, 2016. "Cumulative Prospect Theory in the Laboratory: A Reconsideration," Experimental Economics Center Working Paper Series 2016-04, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Smith, Alec, 2019. "Lagged beliefs and reference-dependent utility," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 331-340.
- Peter Brooks & Horst Zank, 2005. "Loss Averse Behavior," Journal of Risk and Uncertainty, Springer, vol. 31(3), pages 301-325, December.
More about this item
Keywords
Loss aversion; Subjective probability; Asymmetry; Attention; Imagination; Negativity bias;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jobhdp:v:118:y:2012:i:2:p:203-215. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/obhdp .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.