Loss Aversion in the Laboratory

Morrison, William G. and Robert Oxoby ()
Additional contact information
Morrison, William G. and Robert Oxoby: Wilfrid Laurier University, http://www.wlu.ca/homepage.php?grp_id=768&ct_id=63
Authors registered in the RePEc Author Service: Robert J. Oxoby

LCERPA Working Papers from Laurier Centre for Economic Research and Policy Analysis

Abstract: We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion protocol (Holt and Laury, 2002). In our experiment, participants earn and retain money for a week before using it in an incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on behavior resulting in participants requiring higher compensation to bear risk.

Keywords: risk aversion; loss aversion; experiments (search for similar items in EconPapers)
JEL-codes: C91 D91 (search for similar items in EconPapers)
Pages: 11
Date: 2014-06-30, Revised 2014-06-30
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Loss Aversion in the Laboratory (2014)
Working Paper: Loss Aversion in the Laboratory (1970)
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Persistent link: https://EconPapers.repec.org/RePEc:wlu:lcerpa:0073

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