Loss Aversion Under Prospect Theory: A Parameter-Free Measurement
Published Online:3 Aug 2007https://doi.org/10.1287/mnsc.1070.0711
References
- Parameter-free elicitation of utilities and probability weighting functions. Management Sci. (2000) 46:1497–1512Link, Google Scholar
- Reconciling introspective utility with revealed preference: Experimental arguments based on prospect theory. J. Econometrics (2007) 138:356–378Crossref, Google Scholar
- Choice-based elicitation and decomposition of decision weights for gains and losses under uncertainty. Management Sci. (2005) 51:1384–1399Link, Google Scholar
- Prospect theory and asset prices. Quart. J. Econom. (2001) 66:1–53Crossref, Google Scholar
- Myopic loss aversion and the equity premium puzzle. Quart. J. Econom. (1995) 110:73–92Crossref, Google Scholar
- Error propagation in the elicitation of utility and probability weighting functions. Theory Decision (2006) 60:315–334Crossref, Google Scholar
- A parameter-free elicitation of the probability weighting function in medical decision analysis. Management Sci. (2000) 46:1485–1496Link, Google Scholar
- Loss aversion and scale compatibility in two-attribute trade-offs. J. Math. Psych. (2002) 46:315–337Crossref, Google Scholar
- Using descriptive findings of prospect theory to improve the prescriptive use of expected utility. Management Sci. (2001) 47:1498–1514Link, Google Scholar
- A parameter-free analysis of the utility of money for the general population under prospect theory. (2006) . Working paper, University of Amsterdam, Amsterdam, The NetherlandsGoogle Scholar
- Loss aversion in a consumption-savings model. J. Econom. Behav. Organ. (1999) 38:155–178Crossref, Google Scholar
- , Kagel J., Roth A. Individual decision making. The Handbook of Experimental Economics (1995) (Princeton University Press, Princeton, NJ) 587–703Google Scholar
- , Kahneman D., Tversky A. Prospect theory in the wild: Evidence from the field. Choices, Values, and Frames (2000) (Cambridge University Press, New York) 288–300Crossref, Google Scholar
- Nonlinear weighting of probabilities and violations of the betweenness axiom. J. Risk Uncertainty (1994) 8:167–196Crossref, Google Scholar
- The effects of financial incentives in experiments: A review and capital-labor-production framework. J. Risk Uncertainty (1999) 19:7–42Crossref, Google Scholar
- Labor supply of New York city cabdrivers: One day at a time. Quart. J. Econom. (1997) 112:407–442Crossref, Google Scholar
- Prospect versus utility. Management Sci. (1989) 35:22–41Link, Google Scholar
- Loss aversion and adaptation in the labour market: Empirical indifference functions and labour supply. Rev. Econom. Statist. (1996) 78:441–450Crossref, Google Scholar
- Is probability weighting sensitive to the magnitude of consequences? An experimental investigation on losses. J. Risk Uncertainty (2004) 28:217–235Crossref, Google Scholar
- Measuring the utility of losses by means of the trade-off method. J. Risk Uncertainty (1998) 17:277–295Crossref, Google Scholar
- Two-piece von Neumann Morgenstern utility functions. Decision Sci. (1979) 10:503–518Crossref, Google Scholar
- Loss aversion and labour supply. J. Eur. Econom. Assoc. (2004) 2:216–228Crossref, Google Scholar
- On the form of the probability weighting function. Cognitive Psych. (1999) 38:129–166Crossref, Google Scholar
- Modeling loss aversion and reference dependence effects on brand choice. Marketing Sci. (1993) 12:378–394Link, Google Scholar
- Psychological factors and stock option exercise. Quart. J. Econom. (1999) 114:601–627Crossref, Google Scholar
- Probability versus certainty equivalence methods in utility measurement: Are they equivalent? Management Sci. (1985) 31:1213–1231Link, Google Scholar
- Experimental practices in economics: A methodological challenge for psychologists? Behavioral Brain Sci. (2001) 24:383–451Crossref, Google Scholar
- Prospect theory: An analysis of decision under risk. Econometrica (1979) 47:263–291Crossref, Google Scholar
- Experimental test of the endowment effect and the Coase theorem. J. Political Econom. (1990) 98:1325–1348Crossref, Google Scholar
- Preference foundations for nonexpected utility: A generalized and simplified technique. Math. Oper. Res. (2003) 28:395–423Link, Google Scholar
- An index of loss aversion. J. Econom. Theory (2005) 122:119–131Crossref, Google Scholar
- Managerial risk preferences for below-target returns. Management Sci. (1980) 26:1238–1249Link, Google Scholar
- Utility of Gains and Losses: Measurement-Theoretical and Experimental Approaches (2000) (Lawrence Erlbaum Associates, Mahwah, NJ) Google Scholar
- The equity premium: A puzzle. J. Monetary Econom. (1985) 15:145–161Crossref, Google Scholar
- Exchange economies and loss exposure: Experiments exploring prospect theory and competitive equilibria in market environments. Amer. Econom. Rev. (1997) 87:801–828Google Scholar
- Comparative risk sensitivity with reference-dependent preferences. J. Risk Uncertainty (2002) 24:131–142Crossref, Google Scholar
- The boundaries of loss aversion. J. Marketing Res. (2005) 42:119–128Crossref, Google Scholar
- The shape of utility functions and organizational behavior. Management Sci. (2003) 49:1251–1263Link, Google Scholar
- Risk aversion and expected-utility theory: A calibration theorem. Econometrica (2000) 68:1281–1292Crossref, Google Scholar
- The Foundations of Mathematics and Other Logical Essays (1931) (Routledge and Kegan Paul, London, UK) Google Scholar
- Expo-power utility: A “flexible” form for absolute and relative risk aversion. Amer. J. Agricultural Econom. (1993) 75:905–913Crossref, Google Scholar
- An experimental test of loss aversion. J. Risk Uncertainty (2002) 25:233–249Crossref, Google Scholar
- What is loss aversion? J. Risk Uncertainty (2005) 30:157–167Crossref, Google Scholar
- Explaining heterogeneity in utility functions by individual differences in decision modes. J. Econom. Psych. (2006) 27:386–401Crossref, Google Scholar
- Developments in non-expected utility theory: The hunt for a descriptive theory of choice under risk. J. Econom. Literature (2000) 28:332–382Crossref, Google Scholar
- Weighing risk and uncertainty. Psych. Rev. (1995) 102:269–283Crossref, Google Scholar
- Loss aversion in riskless choice: A reference-dependent model. Quart. J. Econom. (1991) 56:1039–1061Crossref, Google Scholar
- Advances in prospect theory: Cumulative representation of uncertainty. J. Risk Uncertainty (1992) 5:297–323Crossref, Google Scholar
- Independence, Additivity, Uncertainty (2003) (Springer Verlag, Berlin, Germany) Crossref, Google Scholar
- Eliciting von Neumann-Morgenstern utilities when probabilities are distorted or unknown. Management Sci. (1996) 42:1131–1150Link, Google Scholar
- An axiomatization of cumulative prospect theory. J. Risk Uncertainty (1993) 7:147–176Crossref, Google Scholar
- Curvature of the probability weighting function. Management Sci. (1996) 42:1676–1690Link, Google Scholar

