2016

Deciding for Others Reduces Loss Aversion

Särtryck nr 2016:3

Författare: Ola Andersson, Håkan J. Holm, Jean-Robert Tyran och Erik WengströmÅr: 2016 Publikation: Management Science Årgång (nr): 62 (1) Sidor: 29–36
Artikeln online (behörighet kan krävas)
Preliminär version


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.


Referens:
Andersson, Ola, Håkan J. Holm, Jean-Robert Tyran och Erik Wengström (2016), "Deciding for Others Reduces Loss Aversion". Management Science 62(1), 29–36.

Ola Andersson

Kontakt

Mobil: 070 432 2450
ola.andersson@ifn.se

Aktuell forskare

Henrik Horn

Forskningsområden: Internationella handels- och investeringsavtal, konkurrenspolitik och marknadsregleringar

Några av de frågor Henrik Horn försöker besvara i sin forskning:

  • Hur ska centrala delar av WTO-avtalet tolkas?
  • Hur bör EU:s miljöpolitik utformas?

IFN kalendarium

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se