Deciding for Others Reduces Loss Aversion

We study risk taking on behalf of others, both when choices involve losses and when they do not. A large-scale incentivized experiment with subjects randomly drawn from the Danish population is conducted. We find that deciding for others reduces loss aversion. When choosing between risky prospects f...

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Bibliographic Details
Published in:	Management science Vol. 62; no. 1; pp. 29 - 36
Main Authors:	Andersson, Ola, Holm, Håkan J., Tyran, Jean-Robert, Wengström, Erik
Format:	Journal Article
Language:	English
Published:	Linthicum INFORMS 01.01.2016 Institute for Operations Research and the Management Sciences
Subjects:	Bias Choices Decision making Economics Economics and Business Ekonomi och näringsliv Emotions experiment loss aversion Losses Management Science and Operations Research Methods Nationalekonomi Prospects Risk assessment Risk aversion Risk behavior Risk management Risk taking Samhällsvetenskap Social Sciences Strategy and Management
ISSN:	0025-1909, 1526-5501, 1526-5501
Online Access:	Get full text
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