 Differentiated price loss aversion in destination choice: The effect of tourists’ cultural interestJuan Nicolau () Tourism Management, 2011, vol. 32, issue 5, 1186-1195 Abstract: This article looks into the differentiated effects of loss aversion depending on whether individuals show cultural interest when choosing a destination. Based on the fact that perceived value implies not only sacrifices but also the expectations of a certain level of quality and prospects of satisfaction, together with the idea the Prospect Theory applies to tourism prices, the article states the hypothesis that interest in culture when choosing a destination lowers people’s loss aversion. By incorporating the reference-dependent model into a Multinomial Logit Model with Random Parameters – which controls for heterogeneity – the empirical application shows that culture-interested tourists are less loss averse; i.e. the negative effect of finding a higher than expected price diminishes with cultural interest. The expectation of enjoyment of these attributes and the more conscious attitude toward maintenance/restoration activities of cultural sites are hypothesized to lead prices to be evaluated differently when selecting a destination. Keywords: Loss aversion; Prospect theory; Cultural interest; Destination choice (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:touman:v:32:y:2011:i:5:p:1186-1195 DOI: 10.1016/j.tourman.2010.11.002 Access Statistics for this article Tourism Management is currently edited by Chris Ryan More articles in Tourism Management from Elsevier |
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