Status quo and loss aversion: Are people less conservative to avoid a loss?

Sana El Harbi and Oumeima Toumia
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Sana El Harbi: USO - جامعة سوسة = Université de Sousse = University of Sousse, IHEC - Institut des hautes études commerciales (Carthage, Tunisie) - UCAR - Université de Carthage (Tunisie) = University of Carthage
Oumeima Toumia: USO - جامعة سوسة = Université de Sousse = University of Sousse, IHEC - Institut des hautes études commerciales (Carthage, Tunisie) - UCAR - Université de Carthage (Tunisie) = University of Carthage

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Abstract: A growing literature has emerged to report the impact of the status quo bias on the most real decisions. However, previous studies do not provide direct evidence on the effect of the status quo by considering the distinction between a gain frame and a loss frame. Thus, we investigate whether the extent of the status quo choice is frame-dependent. We use a between-subjects design experiment based on lottery choices in a gain-framing versus a loss-framing. Our experimental results show the existence of the status quo in both frames. However, the status quo option is significantly more observed in the gain frame than in the loss frame. Our findings are consistent with the observation that, in the loss domain, individuals tend to be more risk-seeking. Our paper presents implications for research and practice. In particular, the examination of status quo bias, gain-loss framing, and the interplay between the two, contributes to the management and organization literature. Nevertheless, higher amounts, more choices, and more ranges of ages may be used to investigate the robustness of our findings

Keywords: Poisson regression; Logistic regression; Experiment; Status quo; Loss aversion (search for similar items in EconPapers)
Date: 2022-12-06
Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-05396153v1
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Published in Revue internationale de psychosociologie et de gestion des comportements organisationnels, 2022, XXVIII (74), pp.131-148. ⟨10.3917/rips1.074.0131⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05396153

DOI: 10.3917/rips1.074.0131

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