Difference between revisions of "Loss aversion"
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For most of the people, pain will cause more repalsion then plesure will cause attraction. This is due to the hazardous nature of pain. This may be the neuronal mechanism behind [[loss aversion]]. | For most of the people, pain will cause more repalsion then plesure will cause attraction. This is due to the hazardous nature of pain. This may be the neuronal mechanism behind [[loss aversion]]. | ||
| − | It is positive corrolated to culture, where there are heigher individualism, power distance, and masculinity (mostly [[conservatism]]). Some Relagions seems to be also positive corolated to loss aversion, while macroeconomic is less corrolated<ref>[http://onlinelibrary.wiley.com/doi/10.1002/bdm.1941/abstract Wang, Mei, Marc Oliver Rieger, and Thorsten Hens. "The Impact of Culture on Loss Aversion." Journal of Behavioral Decision Making (2016).]</ref>. | + | It is positive corrolated to culture, where there are heigher individualism, power distance, and masculinity (mostly [[conservatism]]). Some Relagions seems to be also positive corolated to loss aversion, while macroeconomic is less corrolated<ref>[http://onlinelibrary.wiley.com/doi/10.1002/bdm.1941/abstract Wang, Mei, Marc Oliver Rieger, and Thorsten Hens. "The Impact of Culture on Loss Aversion." Journal of Behavioral Decision Making (2016).]</ref>. Musilmes may have higher loss aversion<ref>[http://www.economics.phil.uni-erlangen.de/forschung/workingpapers/riskaversion.pdf Cultural Differences in Risk Tolerance (2013) Christoph S. Weber]</ref>. |
==References== | ==References== | ||
<references/> | <references/> | ||
Latest revision as of 08:19, 9 February 2016
In economics and decision theory, loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Most studies suggest that losses are twice as powerful, psychologically, as gains.[1] Loss aversion was first demonstrated by Amos Tversky and Daniel Kahneman.
For most of the people, pain will cause more repalsion then plesure will cause attraction. This is due to the hazardous nature of pain. This may be the neuronal mechanism behind loss aversion.
It is positive corrolated to culture, where there are heigher individualism, power distance, and masculinity (mostly conservatism). Some Relagions seems to be also positive corolated to loss aversion, while macroeconomic is less corrolated[1]. Musilmes may have higher loss aversion[2].