Talk:Loss aversion/Archives/2015

Dr. Karle's comment on this article
Dr. Karle has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"In my opinion, references 4 to 7 are rather poor concerning their methodological content. In addition, I think that the statement that "loss aversion is so important to the fields of marketing and behavioral finance" is incomplete in the sense that it neglects Experimental Economics and modern Behavioral Economics (including theory). This statement may therefore be misleading. A new wave of Economic research on loss aversion includes the concept of expectation-based loss aversion of Koszegi and Rabin (2006, 2007): Recent experimental work from the laboratory and in the field provides a large body of evidence that concludes that economic outcomes are well explained by the concept of expectation-based loss aversion of Koszegi and Rabin (2006, 2007). These works consist of exchange and valuation experiments (see Ericson and Fuster, 2011), consumption–choice experiments with sandwiches (see Karle et al., 2015), experiments in which participants are compensated for exerting effort in a tedious and repetitive task (see Abeler et al., 2011), and of sequential–move tournaments (see Gill and Prowse, 2012). There is also evidence that expectation-based reference dependence affects golf players’ performance (see Pope and Schweitzer, 2011) and cabdrivers’ labour supply decisions (see Crawford and Meng, 2011). Other evidence can be found in Smith (2012) and Heffetz and List (2014).

References:

Abeler, Johannes, Armin Falk, Lorenz Goette, and David Huffman, “Reference Points and Effort Provision,” American Economic Review, 2011, 101 (2), 470–492.

Crawford, Vincent P. and JuanjuanMeng, “New York City Cabdrivers’ Labor Supply Revisited: Reference-Dependent Preferences with Rational-Expectations Targets for Hours and Income,” American Economic Review, 2011, 101 (5), 1912–32.

Ericson, Keith M.Marzilli and Andreas Fuster, “Expectations as Endowments: Evidence on Reference-Dependent Preferences from Exchange and Valuation Experiments,” Quarterly Journal of Economics, 2011, 126 (4), 1879–1907.

Gill, David and Victoria Prowse (2012). "A structural analysis of disappointment aversion in a real effort competition". American Economic Review 102 (1): 469–503.

Heffetz, Ori and John A. List, “Is the Endowment Effect an Expectations Effect?,” Journal of the European Economic Association, 2014, 12 (5), 1396–1422.

Karle, Heiko, Georg Kirchsteiger, and Martin Peitz, “Loss Aversion and Consumption Choice: Theory and Experimental Evidence,” American Economic Journal: Microeconomics, 2015, 7 (2), 101–120.

K˝oszegi, Botond and Matthew Rabin, “A Model of Reference-Dependent Preferences,” Quarterly Journal of Economics, 2006, 121 (4), 1133–1165.

K˝oszegi, Botond and Matthew Rabin,, “Reference-Dependent Risk Attitudes,” American Economic Review, September 2007, 97 (4), 1047–1073.

Pope, Devin G. and Maurice E. Schweitzer, “Is TigerWoods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes,” American Economic Review, 2011, 101, 129–157.

Smith, Alec, “Lagged Beliefs and Reference–Dependent Utility,” Working Paper, Caltech, 2012."

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 * Reference : Karle, Heiko & Kirchsteiger, Georg & Peitz, Martin, 2012. "Loss Aversion and Consumption Choice: Theory and Experimental Evidence," CEPR Discussion Papers 9183, C.E.P.R. Discussion Papers.

ExpertIdeasBot (talk) 19:41, 4 December 2015 (UTC)