Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Bachelor's Thesis |
| Scope | Discipline-based scholarship |
| Title | The Elicitation of Loss Aversion |
| Organization Unit | |
| Authors |
|
| Supervisors |
|
| Language |
|
| Institution | University of Zurich |
| Faculty | Faculty of Economics, Business Administration and Information Technology |
| Date | 2014 |
| Zusammenfassung | When faced with a choice, a rational decision maker will prefer the prospect, that offers the highest expected utility1. Loss aversion, however, has an impact on the decision. It describes a behavioural phenomenon, in which individuals are more sensitive to losses than to equivalently sized gains. It is highly relevant in theory as well as in practice. Anchoring and framing influence the already non-rational heuristic of loss aversion even more, thus the actions and utilities of the individuals increase in their irrationality. The anchoring effect appears, when a subject is influenced by an arbitrary value, which affects his/her decision. It subconsciously binds the individuals to a specific value (anchor). The framing effect refers to the decision-maker’s perception of choices, outcomes and contingencies associated with particular decision problems. It therefore has an influence on the decision as well. |
| Export |
BibTeX
|