1,396 Results Found

Risk and loss aversion are phenomena with an important influence on decision-making, especially in economic contexts. At present, it remains unclear whether both are related, as well as whether they could have an emotional origin. The objective of th...

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk av...

In bimatrix games with symmetric triangular fuzzy payoffs, our work defines an (α, β)-risk aversion Nash equilibrium ((α, β)-RANE) and presents its sufficient and necessary condition. Our work also discusses the relationships be...

We study behavior in a moonlighting game with unequal initial endowments. In this game, predictions for second-mover behavior based on inequality aversion are in contrast to reciprocity. We find that inequality aversion explains only few observations...

Stocks are riskier than bonds. This causes a risk premium for stocks. That the size of this premium, however, seems to be larger than risk aversion alone can explain the so-called “equity premium puzzle”. One possible explanation is the inclusion of...

This is a study of decision problems under two-dimensional risk. We use an existing index of absolute correlation aversion to conveniently classify bivariate preferences, with respect to attitudes toward this risk. This classification seems to be mor...

The theoretical literature on risk aversion and Expected Utility Theory is extensive; however, the analysis of this behaviour with natural experiments could be more comprehensive. In this paper, we use data from 120 episodes of the Portuguese version...

Researchers usually specify risk aversion coefficients from 1 (lowest) to M (highest) for a portfolio to indicate active or passive approaches. How effective is this practice? Recent studies suggest that the global minimum variance portfolio (GMVP) i...

We expand upon the previous models of inequity aversion of Fehr and Schmidt [1], and Frohlich et al. [2], which assume that dictators get disutility if the final allocation of surplus deviates from the equal split (egalitarian principle) or from the...

The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the paper introduce...

Organizational change has been investigated for decades, with many works addressing change adoption challenges. Change aversion, like change resistance, is not uncommon, but going unchecked can reduce organizational change initiative success. This co...

According to the achievement motivation theory, in achievement context, students may have to not only approach success/gain (e.g., strive to get a better grade) but also avoid failure/loss (e.g., avoid performing worse). However, these two types of a...

Carbon dioxide and isoflurane are widely used for killing rats, yet may not truly achieve “euthanasia”, because they elicit aversion. The inhalant anesthetic desflurane is faster acting than isoflurane, representing a potential refinement...

Arad and Rubinstein (2012, AER) proposed the 11–20 money request game as an alternative to the P beauty contest game for measuring the depth of thinking. In this paper, we show theoretically that in the Nash equilibrium of the 11–20 game...

Persistent alcohol seeking despite the risk of aversive consequences is a crucial characteristic of alcohol use disorders (AUDs). Therefore, an improved understanding of the molecular basis of alcohol seeking despite aversive stimuli or punishment in...

Traditionally, in the area of production and operations management, the financial states and decision-makers’ behaviour regarding loss have been ignored in the supply chain, which may lead to infeasible or unrealistic practices or even catastro...

The classic Cournot game ignores the influence of the players’ psychological behavior on the decision and cannot deal with the game problem of fuzzy information. To address such game situations, a credibilistic Cournot game is developed, where...

Financial risk aversion and financial risk tolerance are sometimes considered to be ‘opposite sides of the same coin’, with the implication being that risk aversion (a term describing the unwillingness of an investor to take risks based o...

Two independent lines of High Drinking in the Dark (HDID-1, HDID-2) mice have been bred to reach high blood alcohol levels after a short period of binge-like ethanol drinking. Male mice of both lines were shown to have reduced sensitivity to develop...

Charities face common problems in which donors tend to avoid charities with high overhead rates. This overhead aversion phenomenon forces charities to suppress their overhead spending, which impedes them from performing as best as they can. Substanti...

This paper investigates a dynamic liability-driven investment policy for defined-benefit (DB) plans by incorporating the loss aversion of a sponsor, who is assumed to be more sensitive to underfunding than overfunding. Through the lens of prospect th...

Within the framework of a laboratory experiment, we examine to what extent algorithm aversion acts as an obstacle in the establishment of robo advisors. The subjects had to complete diversification tasks. They could either do this themselves or they...

This study measured the risk aversion of nineteen selected countries using Szpiro’s approach and analyzed its effect on life insurance demand. Additionally, income and education were included as control variables and tested for their effects on...

This paper constructs an emergency quantity discount contract to explore the inherent law of the contract coordinating the supply chain with stochastic market demand and price and the risk-averse supplier. Meanwhile, the conditional value-at-risk (CV...

In order to study the impact of risk aversion characteristics of enterprises on supply chain risk transmission, the risk aversion utility function is introduced, and the risk elasticity coefficient is used to construct a supplier-dominated low-carbon...

Investing in entrepreneurship may be costly, and therefore risky, and entrepreneurship is also an economic endeavor that is highly dependent on entrepreneurial ability and risk appetite. In this study, data from 669 famers in southwest China were use...

Punishment policies on the inappropriate treatment of dead hogs play a key role in safeguarding public health and environmental protection. These policies aim to regulate the behavior of farmers and promote the development of sustainable agriculture....

To date, the studies on managerial loss aversion have produced contradictory findings, making it impossible to: (i) identify the ultimate impact of managerial loss aversion on the value that organisations create for themselves and for their stakehold...

In this paper, we apply a combined revenue sharing and buyback contract to investigate the channel coordination of a two-echelon supply chain with a loss-averse retailer. Since loss-averse decision makers usually take on more risks, the Conditional V...

The consumer environmental awareness promotes green manufacturing and the behavioral preferences of members become prevailing in supply chain management. To promote further development of green supply chains, a two-echelon green supply chain with a m...

Although algorithms make more accurate forecasts than humans in many applications, decision-makers often refuse to resort to their use. In an economic experiment, we examine whether the extent of this phenomenon known as algorithm aversion can be red...

Uncertainty in consumer purchasing behavior within online markets propels manufacturers to adopt blockchain for risk mitigation, reshaping supply chain operational dynamics. This study investigates the sales mode selection and blockchain adoption str...

Reducing carbon emissions, including emission abatement outsourcing at the supply-chain level, is becoming a significant but challenging problem in practice. Confronting this challenge, we therefore break down the practice to focus on a low-carbon su...

Experimental research in health economics has analyzed the effects of economic preference parameters such as risk attitude and time preference on the probability of adopting risky health behaviors. However, the existing evidence is mixed and previous...

We report the results of an empirical study on gaze aversion during dyadic human-to-human conversation in an interview setting. To address various methodological challenges in assessing gaze-to-face contact, we followed an approach where the experime...

The use of zebrafish (Danio rerio) as an animal model is growing and occurs in a wide range of scientific areas. Therefore, researchers need better and more appropriate anaesthetics for stressful and/or painful procedures to prevent unpleasant experi...

We analyze the effects of guilt aversion in the Battle of Sexes game by exploiting the theory of psychological games and the concept of psychological Nash equilibrium. We then examine the impact of ambiguity in the (second-order) beliefs by taking in...

The genetic relationships between different behaviors used to index the aversive effects of ethanol are unknown. To address this issue, ethanol-induced conditioned place aversion (CPA) was tested in a genetically diverse panel of 15 inbred mouse stra...

Methods to handle uncertainty in economic evaluation have gained much attention in the literature, and the cost-effectiveness acceptability curve (CEAC) is the most widely used method to summarise and present uncertainty associated with program costs...

The green supply chain is a crucial approach to addressing environmental issues and supporting sustainable development. This study examines the coordination challenges in green supply chains, accounting for risk aversion and manufacturer competition....

This study examines the intricate pricing and coordination issues shaped by risk-averse behavior and retailer competition in the green supply chain. Firstly, we derive equilibrium strategies for stakeholders by employing models. The impact of the ris...

This study focuses on the impact of a supply chain manufacturer’s fairness concern and risk aversion on the green supply chain and constructs a two-level green supply chain consisting of a manufacturer and a retailer. It compares three models:...

Illegal wildlife trade exerts severe pressure on wild parrot populations, and confiscated parrots often end up in rescue centers where they are rehabilitated for release. However, parrots kept in captivity often develop potentially maladaptive behavi...

Attracting forestland owners to participate in carbon markets can be challenging for several reasons including offset price volatility, legislative uncertainties, high costs of offset project development, long contract lengths, and landowners’...

The increasing share of renewable energy sources, such as wind and solar generation, has a direct impact on the planning and operation of power systems. In addition, the consideration of risk criteria within the decision support tools used by market...

In the circumstance that unexpected events lead to the information asymmetry of sales costs, supplier risk aversion and stochastic price, this paper discusses the internal law of using an emergency quantity discount contract to coordinate the supply...

Considering that a lag effect exists in R&D investment, investigating the impacts of manufacturers’ resulting loss-averse behavior on R&D investment in carbon emission reduction technologies is important. This paper establishes three di...

The nature of contemporary careers has shifted and is characterized by precarity, emphasizing the need for young people to possess adequate career resources in their pursuit of decent work. Grounded in the dual-process model and the conservation of r...

Background: Aversive conditioning weakens the gratifying value of a comfort meal. The aim was to determine the effect of a cognitive intervention to reverse aversive conditioning and restore hedonic postprandial response. Methods: This was a randomiz...

The need for low-carbon development has become a social consensus. Increasing numbers of enterprises implement carbon emission reduction by using carbon cap-and-trade mechanisms to cater to consumers and practice social responsibility. From the manuf...