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...
Gespeichert in:
| Veröffentlicht in: | Management science 2016-01, Vol.62 (1), p.29-36 |
|---|---|
| Hauptverfasser: | , , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 36 |
|---|---|
| container_issue | 1 |
| container_start_page | 29 |
| container_title | Management science |
| container_volume | 62 |
| creator | Andersson, Ola Holm, Håkan J. Tyran, Jean-Robert Wengström, Erik |
| description | 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 for which losses are ruled out by design, subjects make the same choices for themselves as for others. In contrast, when losses are possible, we find that the two types of choices differ. In particular, we find that subjects who make choices for themselves take less risk than those who decide for others when losses loom. This finding is consistent with an interpretation of loss aversion as a bias in decision making driven by emotions and that these emotions are reduced when making decisions for others.
This paper was accepted by Uri Gneezy, behavioral economics
. |
| doi_str_mv | 10.1287/mnsc.2014.2085 |
| format | Article |
| fullrecord | <record><control><sourceid>gale_jstor</sourceid><recordid>TN_cdi_gale_infotracgeneralonefile_A445367390</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A445367390</galeid><jstor_id>43834991</jstor_id><sourcerecordid>A445367390</sourcerecordid><originalsourceid>FETCH-LOGICAL-c846t-68c6eef40a923865488d783401c6e8f366804086f721f0e843512b5d839b06763</originalsourceid><addsrcrecordid>eNqFku2L1DAQxosouJ5-9ZtQEAThuk6al6YflzvfYOFA1K9Dm056WbbNmrS-_PemrNy5sCJhJjD85iEzebLsOYM1K3X1ZhijWZfAREpaPshWTJaqkBLYw2wFUMqC1VA_zp7EuAOASldqlb2-JuM6N_a59SG_mW4pxPwTdbOhmG99jPnmeyo5Pz7NHtlmH-nZn_si-_Lu7eerD8X25v3Hq822MFqoqVDaKCIroKlLrpUUWneV5gJYqmvLldIgQCtblcwCacElK1vZaV63oCrFL7LtUTf-oMPc4iG4oQm_0DcO9_MhRZsCI2HdKNmCBTQGJIqq1VgT1djxlgurhQVjktzlP-Wu3dcN-tDjPKOQWpcs4S-P-CH4bzPFCXd-DmMaGEtVaQYqLfWe6ps9oRutn0JjBhcNboSQXFW8hkQVZ6ieRgrN3o9kXSqf8OszfDodDc6cbXh10pCYiX5OfTPHiKfg5V9gO0c3Ukwpuv52ikf-3ENMSA4IZO-2xgAXr-HiNVy8hovXUsOLY8MuTj7c0YKnj69rdr-JZagwxP_p_QYE3NmQ</addsrcrecordid><sourcetype>Open Access Repository</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2678106526</pqid></control><display><type>article</type><title>Deciding for Others Reduces Loss Aversion</title><source>INFORMS PubsOnLine</source><source>Business Source Complete</source><source>JSTOR Archive Collection A-Z Listing</source><creator>Andersson, Ola ; Holm, Håkan J. ; Tyran, Jean-Robert ; Wengström, Erik</creator><creatorcontrib>Andersson, Ola ; Holm, Håkan J. ; Tyran, Jean-Robert ; Wengström, Erik</creatorcontrib><description>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 for which losses are ruled out by design, subjects make the same choices for themselves as for others. In contrast, when losses are possible, we find that the two types of choices differ. In particular, we find that subjects who make choices for themselves take less risk than those who decide for others when losses loom. This finding is consistent with an interpretation of loss aversion as a bias in decision making driven by emotions and that these emotions are reduced when making decisions for others.
This paper was accepted by Uri Gneezy, behavioral economics
.</description><identifier>ISSN: 0025-1909</identifier><identifier>ISSN: 1526-5501</identifier><identifier>EISSN: 1526-5501</identifier><identifier>DOI: 10.1287/mnsc.2014.2085</identifier><language>eng</language><publisher>Linthicum: INFORMS</publisher><subject>Bias ; 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 management ; Risk taking ; Samhällsvetenskap ; Social Sciences ; Strategy and Management</subject><ispartof>Management science, 2016-01, Vol.62 (1), p.29-36</ispartof><rights>2016 INFORMS</rights><rights>COPYRIGHT 2016 Institute for Operations Research and the Management Sciences</rights><rights>COPYRIGHT 2016 Institute for Operations Research and the Management Sciences</rights><rights>Copyright Institute for Operations Research and the Management Sciences Jan 2016</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c846t-68c6eef40a923865488d783401c6e8f366804086f721f0e843512b5d839b06763</citedby><cites>FETCH-LOGICAL-c846t-68c6eef40a923865488d783401c6e8f366804086f721f0e843512b5d839b06763</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/43834991$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://pubsonline.informs.org/doi/full/10.1287/mnsc.2014.2085$$EHTML$$P50$$Ginforms$$H</linktohtml><link.rule.ids>230,314,780,784,803,885,3692,27924,27925,58017,58250,62616</link.rule.ids><backlink>$$Uhttps://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-458821$$DView record from Swedish Publication Index$$Hfree_for_read</backlink><backlink>$$Uhttps://lup.lub.lu.se/record/4617181$$DView record from Swedish Publication Index$$Hfree_for_read</backlink></links><search><creatorcontrib>Andersson, Ola</creatorcontrib><creatorcontrib>Holm, Håkan J.</creatorcontrib><creatorcontrib>Tyran, Jean-Robert</creatorcontrib><creatorcontrib>Wengström, Erik</creatorcontrib><title>Deciding for Others Reduces Loss Aversion</title><title>Management science</title><description>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 for which losses are ruled out by design, subjects make the same choices for themselves as for others. In contrast, when losses are possible, we find that the two types of choices differ. In particular, we find that subjects who make choices for themselves take less risk than those who decide for others when losses loom. This finding is consistent with an interpretation of loss aversion as a bias in decision making driven by emotions and that these emotions are reduced when making decisions for others.
This paper was accepted by Uri Gneezy, behavioral economics
.</description><subject>Bias</subject><subject>Decision making</subject><subject>Economics</subject><subject>Economics and Business</subject><subject>Ekonomi och näringsliv</subject><subject>Emotions</subject><subject>experiment</subject><subject>loss aversion</subject><subject>Losses</subject><subject>Management Science and Operations Research</subject><subject>Methods</subject><subject>Nationalekonomi</subject><subject>Prospects</subject><subject>Risk assessment</subject><subject>Risk aversion</subject><subject>Risk management</subject><subject>Risk taking</subject><subject>Samhällsvetenskap</subject><subject>Social Sciences</subject><subject>Strategy and Management</subject><issn>0025-1909</issn><issn>1526-5501</issn><issn>1526-5501</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2016</creationdate><recordtype>article</recordtype><sourceid>N95</sourceid><recordid>eNqFku2L1DAQxosouJ5-9ZtQEAThuk6al6YflzvfYOFA1K9Dm056WbbNmrS-_PemrNy5sCJhJjD85iEzebLsOYM1K3X1ZhijWZfAREpaPshWTJaqkBLYw2wFUMqC1VA_zp7EuAOASldqlb2-JuM6N_a59SG_mW4pxPwTdbOhmG99jPnmeyo5Pz7NHtlmH-nZn_si-_Lu7eerD8X25v3Hq822MFqoqVDaKCIroKlLrpUUWneV5gJYqmvLldIgQCtblcwCacElK1vZaV63oCrFL7LtUTf-oMPc4iG4oQm_0DcO9_MhRZsCI2HdKNmCBTQGJIqq1VgT1djxlgurhQVjktzlP-Wu3dcN-tDjPKOQWpcs4S-P-CH4bzPFCXd-DmMaGEtVaQYqLfWe6ps9oRutn0JjBhcNboSQXFW8hkQVZ6ieRgrN3o9kXSqf8OszfDodDc6cbXh10pCYiX5OfTPHiKfg5V9gO0c3Ukwpuv52ikf-3ENMSA4IZO-2xgAXr-HiNVy8hovXUsOLY8MuTj7c0YKnj69rdr-JZagwxP_p_QYE3NmQ</recordid><startdate>20160101</startdate><enddate>20160101</enddate><creator>Andersson, Ola</creator><creator>Holm, Håkan J.</creator><creator>Tyran, Jean-Robert</creator><creator>Wengström, Erik</creator><general>INFORMS</general><general>Institute for Operations Research and the Management Sciences</general><scope>AAYXX</scope><scope>CITATION</scope><scope>N95</scope><scope>XI7</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope><scope>ADTPV</scope><scope>AOWAS</scope><scope>DF2</scope><scope>D95</scope></search><sort><creationdate>20160101</creationdate><title>Deciding for Others Reduces Loss Aversion</title><author>Andersson, Ola ; Holm, Håkan J. ; Tyran, Jean-Robert ; Wengström, Erik</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c846t-68c6eef40a923865488d783401c6e8f366804086f721f0e843512b5d839b06763</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2016</creationdate><topic>Bias</topic><topic>Decision making</topic><topic>Economics</topic><topic>Economics and Business</topic><topic>Ekonomi och näringsliv</topic><topic>Emotions</topic><topic>experiment</topic><topic>loss aversion</topic><topic>Losses</topic><topic>Management Science and Operations Research</topic><topic>Methods</topic><topic>Nationalekonomi</topic><topic>Prospects</topic><topic>Risk assessment</topic><topic>Risk aversion</topic><topic>Risk management</topic><topic>Risk taking</topic><topic>Samhällsvetenskap</topic><topic>Social Sciences</topic><topic>Strategy and Management</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Andersson, Ola</creatorcontrib><creatorcontrib>Holm, Håkan J.</creatorcontrib><creatorcontrib>Tyran, Jean-Robert</creatorcontrib><creatorcontrib>Wengström, Erik</creatorcontrib><collection>CrossRef</collection><collection>Gale Business: Insights</collection><collection>Business Insights: Essentials</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><collection>SwePub</collection><collection>SwePub Articles</collection><collection>SWEPUB Uppsala universitet</collection><collection>SWEPUB Lunds universitet</collection><jtitle>Management science</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Andersson, Ola</au><au>Holm, Håkan J.</au><au>Tyran, Jean-Robert</au><au>Wengström, Erik</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Deciding for Others Reduces Loss Aversion</atitle><jtitle>Management science</jtitle><date>2016-01-01</date><risdate>2016</risdate><volume>62</volume><issue>1</issue><spage>29</spage><epage>36</epage><pages>29-36</pages><issn>0025-1909</issn><issn>1526-5501</issn><eissn>1526-5501</eissn><abstract>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 for which losses are ruled out by design, subjects make the same choices for themselves as for others. In contrast, when losses are possible, we find that the two types of choices differ. In particular, we find that subjects who make choices for themselves take less risk than those who decide for others when losses loom. This finding is consistent with an interpretation of loss aversion as a bias in decision making driven by emotions and that these emotions are reduced when making decisions for others.
This paper was accepted by Uri Gneezy, behavioral economics
.</abstract><cop>Linthicum</cop><pub>INFORMS</pub><doi>10.1287/mnsc.2014.2085</doi><tpages>8</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0025-1909 |
| ispartof | Management science, 2016-01, Vol.62 (1), p.29-36 |
| issn | 0025-1909 1526-5501 1526-5501 |
| language | eng |
| recordid | cdi_gale_infotracgeneralonefile_A445367390 |
| source | INFORMS PubsOnLine; Business Source Complete; JSTOR Archive Collection A-Z Listing |
| subjects | Bias 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 management Risk taking Samhällsvetenskap Social Sciences Strategy and Management |
| title | Deciding for Others Reduces Loss Aversion |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-06T08%3A14%3A41IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_jstor&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Deciding%20for%20Others%20Reduces%20Loss%20Aversion&rft.jtitle=Management%20science&rft.au=Andersson,%20Ola&rft.date=2016-01-01&rft.volume=62&rft.issue=1&rft.spage=29&rft.epage=36&rft.pages=29-36&rft.issn=0025-1909&rft.eissn=1526-5501&rft_id=info:doi/10.1287/mnsc.2014.2085&rft_dat=%3Cgale_jstor%3EA445367390%3C/gale_jstor%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2678106526&rft_id=info:pmid/&rft_galeid=A445367390&rft_jstor_id=43834991&rfr_iscdi=true |