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  4. June 2024
  5. Meta-analysis of Empirical Estimates of Loss Aversion

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Meta-analysis of Empirical Estimates of Loss Aversion

  • Alexander L. Brown
  • Taisuke Imai
  • Ferdinand M. Vieider
  • Colin F. Camerer
Journal of Economic Literature
vol. 62, no. 2, June 2024
(pp. 485–516)
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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 from 1992 to 2017. 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 1.955 with a 95 percent probability that the true value falls in the interval [1.820, 2.102]. We record several observable characteristics of the study designs. Few characteristics are substantially correlated with differences in the mean estimates.

Citation

Brown, Alexander L., Taisuke Imai, Ferdinand M. Vieider, and Colin F. Camerer. 2024. "Meta-analysis of Empirical Estimates of Loss Aversion." Journal of Economic Literature 62 (2): 485–516. DOI: 10.1257/jel.20221698

Additional Materials

JEL Classification

  • D81 Criteria for Decision-Making under Risk and Uncertainty
  • D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making