Testing competing models of loss aversion: an adversarial collaboration

Bateman, Ian, Kahneman, Daniel, Munro, Alistair, Starmer, Chris and Sugden, Robert (2005) Testing competing models of loss aversion: an adversarial collaboration. Journal of Public Economics, 89 (8). pp. 1561-1580. ISSN 0047-2727

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Abstract

This paper reports an ‘adversarial collaboration’—a project carried out by two individuals or research groups who, having proposed conflicting hypotheses, seek to resolve their dispute. It describes an experiment which investigates whether, when individuals consider giving up money in exchange for goods, they construe money outlays as losses or as foregone gains. This issue bears on the explanation of the widely observed disparity between willingness-to-pay (WTP) and willingness-to-accept (WTA) valuations of costs and benefits, which has proved problematic for contingent valuation studies. The results of the experiment are broadly consistent with the hypothesis that money outlays are perceived as losses.

Item Type:	Article
Faculty \ School:	Faculty of Science > School of Environmental Sciences Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences
Depositing User:	Vishal Gautam
Date Deposited:	01 Aug 2005
Last Modified:	22 Apr 2023 01:43
URI:	https://ueaeprints.uea.ac.uk/id/eprint/16539
DOI:	10.1016/j.jpubeco.2004.06.013

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