Loss Aversion in Riskless Choice: A Reference-Dependent Model
Abstract
This article presents a reference-dependent theory of consumer choice, with the central assumption that losses and disadvantages have greater impact on preferences than gains and advantages. Implications of loss aversion for economic behavior are considered.
Link to Resource
Read Article: http://www.sscnet.ucla.edu/polisci/faculty/chwe/austen/tversky1991.pdf