When gains loom larger than losses: Reversed loss aversion for small amounts of money

Psychological Science

Volumn 18, Issue 12, 2007, Pages 1099-1105

  Harinck, Fieke ^a   Van Dijk, Eric ^a   Van Beest, Ilja ^a   Mersmann, Paul ^a  

^a LEIDEN UNIVERSITY   (Netherlands)

Author keywords

[No Author keywords available]

Indexed keywords

ADOLESCENT; ARTICLE; DECISION MAKING; ECONOMICS; HUMAN; SOCIAL BEHAVIOR;

ADOLESCENT; DECISION MAKING; ECONOMICS; HUMANS; SOCIAL BEHAVIOR;

EID: 36348957488     PISSN: 09567976     EISSN: 14679280     Source Type: Journal    
DOI: 10.1111/j.1467-9280.2007.02031.x     Document Type: Article

References (36)

1. Ajzen, I. Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice Hall.
2. Arkes, H.R. Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35, 124 140.
3. Beggan, J.K. (1992). On the social nature of nonsocial perception: The mere ownership effect. Journal of Personality and Social Psychology, 62, 229 237.
4. Bell, D.E. (1985). Disappointment in decision making under uncertainty. Operations Research, 33, 1 27.
5. Cacioppo, J.T., Gardner, W.L. Berntson, G.G. (1997). Beyond bipolar conceptualization and measures: The case of attitudes and evaluative space. Personality and Social Psychology Review, 1, 3 25.
6. Cohen, J. Cohen, P. (1983). Applied multiple regression/correlation analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Erlbaum.
7. De Dreu, C.K.W., Carnevale, P.J.D., Emans, B.J.M. Van de Vliert, E. (1994). Effects of gain-loss frames in negotiation: Loss aversion, mismatching, and frame adoption. Organizational Behavior and Human Decision Processes, 60, 90 107.
8. Förster, J., Higgins, E.T. Idson, L.C. (1998). Approach and avoidance strength during goal attainment: Regulatory focus and the "goal looms larger" effect. Journal of Personality and Social Psychology, 75, 1115 1131.
9. Gilbert, D.T., Morewedge, C.K., Risen, J.L. Wilson, T.D. (2004). Looking forward to looking backward: The misprediction of regret. Psychological Science, 15, 346 350.
10. Gilbert, D.T., Pinel, E.C., Wilson, D.T., Blumberg, S.J. Wheatley, T.P. (1998). Immune neglect: A source of durability bias in affective forecasting. Journal of Personality and Social Psychology, 75, 617 638.
11. Higgins, E.T. (1997). Beyond pleasure and pain. American Psychologist, 52, 1280 1300.
12. Kahneman, D. (1992). Reference points, anchors, norms and mixed feelings. Organizational Behavior and Human Decision Processes, 51, 296 312.
13. Kahneman, D., Diener, E. Schwarz, N. (1999). Well-being: The foundations of hedonic psychology. New York:Russell Sage Foundation.
14. Kahneman, D., Knetsch, J.L. Thaler, R.H. (1990). Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy, 98, 1325 1348.
15. Kahneman, D. Snell, J. (1992). Predicting a changing taste: Do people know what they will like? Journal of Behavioral Decision Making, 5, 187 200.
16. Kahneman, D. Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263 292.
17. Kermer, D.A., Driver-Linn, E., Wilson, T.D. Gilbert, D.T. (2006). Loss aversion is an affective forecasting error. Psychological Science, 17, 649 653.
18. Knetsch, J.L. (1989). The endowment effect and evidence of nonreversible indifference curves. American Economic Review, 79, 1277 1284.
19. Loomes, G. Sugden, R. (1987). Testing for regret and disappointment in choice under uncertainty. Economic Journal, 97, 118 129.
20. Mackenzie, C. (1997). Where are the motives? A problem with evidence in the work of Richard Thaler. Journal of Economic Psychology, 18, 123 135.
21. Novemsky, N. Kahneman, D. (2005a). The boundaries of loss aversion. Journal of Marketing Research, 42, 119 128.
22. Novemsky, N. Kahneman, D. (2005b). How do intentions affect loss aversion? Journal of Marketing Research, 42, 139 140.
23. Prelec, D. Loewenstein, L. (1991). Decision making over time and under uncertainty: A common approach. Management Science, 37, 770 786.
24. Russell, J.A. Carroll, J.M. (1999). On the bipolarity of positive and negative affect. Psychological Bulletin, 125, 3 30.
25. Schimmack, U. (2001). Pleasure, displeasure, and mixed feelings: Are semantic opposites mutually exclusive? Cognition and Emotion, 15, 81 97.
26. Schweitzer, M. (1994). Disentangling status quo and omission effects: An experimental analysis. Organizational Behavior and Human Decision Processes, 58, 457 476.
27. Skinner, B.F. (1938). The behavior of organisms. New York:Appleton- Century-Crofts.
28. Stewart, N., Chater, N. Brown, G.D.A. (2006). Decision by sampling. Cognitive Psychology, 53, 1 26.
29. Thorndike, E.L. (1911). Animal intelligence: Experimental studies. New York:Macmillan.
30. Tversky, A. Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. Quarterly Journal of Economics, 106, 1039 1061.
31. Van Beest, I., Van Dijk, E., De Dreu, C.K.W. Wilke, H.A.M. (2005). Do-no-harm in coalition formation: Why losses inhibit exclusion and promote fairness cognitions. Journal of Experimental Social Psychology, 41, 609 617.
32. Van Dijk, E. Van Knippenberg, D. (1998). Trading wine: On the endowment effect, loss aversion and the comparability of consumer goods. Journal of Economic Psychology, 19, 485 495.
33. Van de Ven, N., Zeelenberg, M. Van Dijk, E. (2005). Buying and selling exchange goods: Outcome information, curiosity and the endowment effect. Journal of Economic Psychology, 26, 459 468.
34. Watson, D. Tellegen, A. (1999). Issues in the dimensional structure of affect: Effects of descriptors, measurement error, and response formats: Comments on Russell and Carroll (1999). Psychological Bulletin, 125, 601 610.
35. Weber, B.J. Chapman, G.B. (2005). Playing for peanuts: Why is risk seeking more common for low-stakes gambles? Organizational Behavior and Human Decision Processes, 97, 31 46.
36. Wilson, T.D. Gilbert, D.T. (2005). Affective forecasting: Knowing what to want. Current Directions in Psychological Science, 14, 131 134.