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Loss Aversion

"losses loom larger than corresponding gains"

"In prospect theory, loss aversion refers to the tendency for people to strongly prefer avoiding losses than acquiring gains. Some studies suggest that losses are as much as twice as psychologically powerful as gains. Loss aversion was first convincingly demonstrated by Amos Tversky and Daniel Kahneman."
Loss aversion - Wikipedia

"The principle of loss aversion was first introduced by Kahneman and Tversky (1979)"

Tversky and Kahneman (1991) "The central assumption of the theory is that losses and disadvantages have greater impact on preferences than gains and advantages."

"Numerous studies have shown that people feel losses more deeply than gains of the same value (Kahneman and Tversky 1979, Tversky and Kahneman 1991)."
Goldberg and von Nitzsch (1999) pages 97-98

Hosted Papers

• OBEROI, Rishi, 2004. Men Behaving Badly: Irrationality in Decision Making When Defeat Becomes Hard to Accept.

Top 10 Papers

1. BENARTZI, S. and R.H. THALER, 1993. Myopic Loss Aversion and the Equity Premium Puzzle. NBER Working Paper. [Cited by 879] (57.02/year)
2. KAHNEMAN, D., J.L. KNETSCH and R.H. THALER, 1991. The endowment effect, loss aversion, and status quo bias. Journal of Economic Perspectives. [Cited by 756] (43.41/year)
3. TVERSKY, A. and D. KAHNEMAN, 2004. Loss Aversion in Riskless Choice: A Reference-Dependent Model. Preference, Belief, and Similarity: Selected Writings. [Cited by 1205] (272.81/year)
4. BARBERIS, N. and M. HUANG, 2001. Mental Accounting, Loss Aversion, and Individual Stock Returns. The Journal of Finance. [Cited by 281] (37.89/year)
5. GENESOVE, D. and C.J. MAYER, Loss Aversion and Seller Behaviour: Evidence from the Housing Market. papers.ssrn.com. [Cited by 267] (?/year)
6. THALER, R.H., et al., 1997. The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test*. The Quarterly Journal of Economics. [Cited by 197] (17.26/year)
7. HARDIE, B.G.S., E.J. JOHNSON and P.S. FADER, 1993. Modeling Loss Aversion and Reference Dependence Effects on Brand Choice. MARKETING SCIENCE. [Cited by 234] (15.18/year)
8. BOWMAN, D., D. MINEHART and M. RABIN, 1999. Loss aversion in a consumption-savings model. Journal of Economic Behavior and Organization. [Cited by 118] (12.53/year)
9. KöBBERLING, V. and P.P. WAKKER, 2005. An index of loss aversion. Journal of Economic Theory. [Cited by 88] (25.75/year)
10. HEISLER, J., 1994. Loss aversion in a futures market: An empirical test. Review of Futures Markets. [Cited by 53] (3.68/year)

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