Meta-Analysis of Empirical Estimates of Loss-Aversion

77 Pages Posted: 26 Jan 2021

See all articles by Alexander L. Brown

Alexander L. Brown

Texas A&M University - Department of Economics

Taisuke Imai

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics

Ferdinand Vieider

WZB Berlin Social Science Center - Risk & Development Unit

Colin Camerer

California Institute of Technology - Division of the Humanities and Social Sciences

Date Written: 2021

Abstract

Loss aversion is one of the most widely used concepts in behavioral economics. We conduct a large-scale interdisciplinary meta-analysis, to systematically accumulate knowledge from numerous empirical estimates of the loss aversion coefficient reported during the past couple of decades. We examine 607 empirical estimates of loss aversion from 150 articles in economics, psychology, neuroscience, and several other disciplines. Our analysis indicates that the mean loss aversion coefficient is between 1.8 and 2.1. We also document how reported estimates vary depending on the observable characteristics of the study design.

JEL Classification: D810, D900, C900, C110

Suggested Citation

Brown, Alexander L. and Imai, Taisuke and Vieider, Ferdinand and Camerer, Colin F., Meta-Analysis of Empirical Estimates of Loss-Aversion (2021). CESifo Working Paper No. 8848, Available at SSRN: https://ssrn.com/abstract=3772089 or http://dx.doi.org/10.2139/ssrn.3772089

Alexander L. Brown

Texas A&M University - Department of Economics ( email )

4228 TAMU
College Station, TX 77843-4228
United States
979-862-8084 (Phone)
979-847-8757 (Fax)

HOME PAGE: http://econweb.tamu.edu/abrown/

Taisuke Imai

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany

Ferdinand Vieider

WZB Berlin Social Science Center - Risk & Development Unit

Berlin
Germany

Colin F. Camerer (Contact Author)

California Institute of Technology - Division of the Humanities and Social Sciences ( email )

1200 East California Blvd.
Pasadena, CA 91125
United States
626-395-4054 (Phone)
626-432-1726 (Fax)

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