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dc.contributor.authorJohnson, Eric J.en_US
dc.contributor.authorGächter, Simonen_US
dc.contributor.authorHerrmann, Andreasen_US
dc.date.accessioned2006-08-30en_US
dc.date.accessioned2010-07-07T09:10:19Z-
dc.date.available2010-07-07T09:10:19Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/33324-
dc.description.abstractLoss aversion, the fact that losses have a greater impact than gains, is a fundamental property of behavioral accounts of choice. In this paper, we suggest four possible characterizations of the relative impact of losses and gains: (1) It could be a constant, such as the much cited value of 2, as in losses have twice the impact of gains. (2) It could be a systematic individual difference, with some individuals more or less loss aversion, (3) it could be a property of the attribute, or (4) a property of the different processes used to construct selling and buying prices. We examine the behavior of a large sample of auto buyers using an experiment which allows us to measure loss aversion, at the individual level for several different attributes. A set of hierarchical linear models shows that to understand loss aversion, one must consider the process used to construct prices. Interestingly, we show that knowledge of the attribute lowers loss aversion and that age and attribute importance increases loss aversion.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 2015en_US
dc.subject.jelC90en_US
dc.subject.jelM31en_US
dc.subject.jelD11en_US
dc.subject.ddc330en_US
dc.subject.keywordloss aversionen_US
dc.subject.keywordconsumer choiceen_US
dc.subject.keywordreference-dependent preferencesen_US
dc.titleExploring the nature of loss aversionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn516755412en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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