A psychological law of inertia and the illusion of loss aversion
The principle of loss aversion is thought to explain a wide range of anomalous phenomena involving tradeoffs between losses and gains. In this article, I show that the anomalies loss aversion was introduced to explain --- the risky bet premium, the endowment effect, and the status-quo bias --- are c...
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| Format: | Article |
| Language: | English |
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Society for Judgment and Decision Making
2006-07-01
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| Series: | Judgment and Decision Making |
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| Online Access: | http://journal.sjdm.org/jdm06002.pdf |