 Power and loss aversionM. Ena Inesi Organizational Behavior and Human Decision Processes, 2010, vol. 112, issue 1, 58-69 Abstract: Four experiments tested the prediction that power reduces loss aversion by increasing the anticipated value of gains and shrinking the negative anticipated value of losses. Experiment 1 provided initial support for the prediction that those in power are less loss averse by replicating a classic paradigm of loss aversion in riskless choice and demonstrating moderation by power. Experiments 2 and 3 expanded on this finding by breaking apart the components of loss aversion to determine how power may reduce it: via gains, losses, or both. Across two scenarios and two different measures of anticipated value, power reduced the anticipated threat associated with a loss. However, the prediction that power increases the anticipated value of gains was not supported. Finally, Experiment 4 replicated the results of Experiments 2 and 3 in the context of a choice with real consequences for the participants. Implications of these findings are discussed. Keywords: Power; Loss; aversion; Choice; Decision; making; Anticipated; value; Hedonic; Decision; outcomes; Expected; value; Approach (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jobhdp:v:112:y:2010:i:1:p:58-69 Access Statistics for this article Organizational Behavior and Human Decision Processes is currently edited by John M. Schaubroeck More articles in Organizational Behavior and Human Decision Processes from Elsevier |
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