The Loss of Loss Aversion: Will It Loom Larger Than Its Gain?
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3049660 [papers.ssrn.com]
2017-10-25 14:20
Loss aversion, the principle that losses loom larger than gains, is among the most widely accepted ideas in the social sciences. The first part of this article introduces and discusses the construct of loss aversion. The second part of this article reviews evidence in support of loss aversion. The upshot of this review is that current evidence does not support that losses, on balance, tend to be any more impactful than gains.
This is a long paper (59 pages) but an easy read. Reviews many prior studies, taking another look at exactly what effect was observed and measured.
source: MR