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dc.contributor.authorQuentin, André
dc.contributor.authorde Langhe, Bart
dc.date.accessioned2022-10-28T03:14:42Z
dc.date.available2022-10-28T03:14:42Z
dc.date.issued2021en_US
dc.identifier.issn0096-3445
dc.identifier.doi10.1037/xge0001052
dc.identifier.urihttp://hdl.handle.net/20.500.12127/7135
dc.description.abstractLoss aversion—the idea that losses loom larger than equivalent gains—is one of the most important ideas in Behavioral Economics. In an influential article published in the Journal of Experimental Psychology: General, Walasek and Stewart (2015) test an implication of decision by sampling theory: Loss aversion can disappear, and even reverse, depending on the distribution of gains and losses people have encountered. In this article, we show that the pattern of results reported in Walasek and Stewart (2015) should not be taken as evidence that loss aversion can disappear and reverse, or that decision by sampling is the origin of loss aversion. It emerges because the estimates of loss aversion are computed on different lotteries in different conditions. In other words, the experimental paradigm violates measurement invariance, and is invalid. We show that analyzing only the subset of lotteries that are common across conditions eliminates the pattern of results. We note that other recently published articles use similar experimental designs, and we discuss general implications for empirical examinations of utility functions.en_US
dc.language.isoenen_US
dc.publisherAmerican Psychological Associationen_US
dc.subjectLoss Aversionen_US
dc.titleNo Evidence for Loss Aversion Disappearance and Reversal in Walasek and Stewart (2015)en_US
dc.identifier.journalJournal of Experimental Psychology: Generalen_US
dc.source.volume150en_US
dc.source.issue12en_US
dc.source.beginpage2659en_US
dc.source.endpage2665en_US
dc.identifier.eissn1939-2222
vlerick.knowledgedomainMarketing & Salesen_US
vlerick.typearticleJournal article with impact factoren_US
vlerick.vlerickdepartmentMKTen_US
dc.identifier.vperid300832en_US


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