Loss Aversion in the Laboratory

William Morrison and Robert Oxoby
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: 12
Date: 2010-06, Revised 1970
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http://www.lcerpa.org/public/papers/LCERPA_2014_10 ... by_Loss_Aversion.pdf

Related works:
Working Paper: Loss Aversion in the Laboratory (2014)
Working Paper: Loss Aversion in the Laboratory (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wlu:lcerpa:lm0072

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