Loss Aversion and Individual Characteristics
2011 (English)In: Environmental and Resource Economics, ISSN 0924-6460, E-ISSN 1573-1502, Vol. 49, no 4, 573-596 p.Article in journal (Refereed) Published
Many studies have shown that loss aversion affects the valuation of non-market goods. Using stated choice data, this paper presents an empirical investigation of how individual-level loss aversion varies with observable personal characteristics and with the choice context. We investigate loss aversion with respect to travel time and money, and find significant loss aversion in both dimensions. The degree of loss aversion in the time dimension is larger than in the money dimension, and depends on age and education. Subjects tend to be more loss averse when the reference is well established.
Place, publisher, year, edition, pages
2011. Vol. 49, no 4, 573-596 p.
Discrete choice model, Fixed effects logit estimator, Loss aversion, Non-market goods, Stated preference data
IdentifiersURN: urn:nbn:se:kth:diva-37146DOI: 10.1007/s10640-010-9455-5ISI: 000292653900006ScopusID: 2-s2.0-79960130274OAI: oai:DiVA.org:kth-37146DiVA: diva2:432378
In Appendix A:
In the equations in lines 8, 13 and 17, ‘log w’ should be replaced by ‘w’.
QC 201108032011-08-032011-08-022012-01-30Bibliographically approved