On the Psychology of Loss Aversion: Possession, Valence, and Reversals of the Endowment Effect

@article{Brenner2007OnTP,
  title={On the Psychology of Loss Aversion: Possession, Valence, and Reversals of the Endowment Effect},
  author={Lyle A. Brenner and Yuval Rottenstreich and Sanjay Sood and Baler Bilgin},
  journal={Journal of Consumer Research},
  year={2007},
  volume={34},
  pages={369-376}
}
Loss aversion states that "losses loom larger than gains." We consider two types of loss aversion defined by two interpretations of loss. A loss can be defined (1) in terms of valence or (2) in terms of possession. Correspondingly, valence loss aversion (VLA) entails greater sensitivity to negative (vs. positive) changes, and possession loss aversion (PLA) entails greater sensitivity to items leaving (vs. entering) one's possession. Both types of loss aversion imply an endowment effect for… Expand

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