A New Approach to Loss Aversion in Repeated Gambles

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Radfar, Mohammad Hossein | 2010

1915 Viewed

Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 40738 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Zamani, Shiva
Abstract:
After introducing “Prosopect Theory” by Kahneman and Tversky in 1979, it is mostly used as an alternative to expected utility theory in order to study human decision making under risky situatutions. Loss aversion has been considered as an important aspect of this theory. In this study, we review loss aversion and the effects of education and gender on it. Finally, we study the effect of repeating a gamble on its participants’ loss aversions. The results show that education and gender have direct effects on loss aversion and repeating a gamble can decrease loss aversion of participants.
Keywords:
Decision Making Under Risk ; Prospect Theory ; Loss Aversion ; Self-Control Problem ; Overconfidence