A new meta-analysis on the WTP/WTA disparity

Tunçel, Tuba; Hammitt, James K.

doi:10.1016/j.jeem.2014.06.001

Cited by 159 publications

(126 citation statements)

References 92 publications

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“…This number was selected because it is the value proposed by theoretical accounts of loss aversion in non-clinical (i.e., normative) populations (Kahneman and Tversky, 1979; Novemsky and Kahneman, 2005; Tversky and Kahneman, 1992). This value also lies within the ranges described by meta-analyses on WTP/WTA disparities (Neumann and Böckenholt, 2014; Sayman and Öncüler, 2005; Tunçel and Hammitt, 2014). Sensitivity analyses were conducted using a lower threshold suggested by one meta-analysis (1.49; Neumann and Böckenholt, 2014).…”

Section: Methodssupporting

confidence: 77%

A pilot study of loss aversion for drug and non-drug commodities in cocaine users

Strickland

Beckmann

Rush

et al. 2017

Drug and Alcohol Dependence

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Background Numerous studies in behavioral economics have demonstrated that individuals are more sensitive to the prospect of a loss than a gain (i.e., loss aversion). Although loss aversion has been well described in “healthy” populations, little research exists in individuals with substance use disorders. This gap is notable considering the prominent role that choice and decision-making play in drug use. The purpose of this pilot study was to evaluate loss aversion in active cocaine users. Methods Current cocaine users (N = 38; 42% female) participated in this within-subjects laboratory pilot study. Subjects completed a battery of tasks designed to assess loss aversion for drug and non-drug commodities under varying risk conditions. Standardized loss aversion coefficients (λ) were compared to theoretically and empirically relevant normative values (i.e., λ = 2). Results Compared to normative loss aversion coefficient values, a precise and consistent decrease in loss aversion was observed in cocaine users (sample λ ≈ 1). These values were observed across drug and non-drug commodities as well as under certain and risky conditions. Conclusions These data represent the first systematic study of loss aversion in cocaine-using populations and provide evidence for equal sensitivity to losses and gains or loss equivalence. Futures studies should evaluate the specificity of these effects to a history of cocaine use as well as the impact of manipulations of loss aversion on drug use to determine how this phenomenon may contribute to intervention development efforts.

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Section: Methodssupporting

confidence: 77%

A pilot study of loss aversion for drug and non-drug commodities in cocaine users

Strickland

Beckmann

Rush

et al. 2017

Drug and Alcohol Dependence

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“…For example, endowment with a physical good might trigger a greater sense of attachment than possession of a lottery ticket (Tunçel and Kammitt 2014). Note that attachment differs from sentimental value.…”

Section: External Validitymentioning

confidence: 99%

Strategic Bias Shifting: Herding as a Behaviorally Rational Response to Regret Aversion

Arlen

Tontrup

2015

SSRN Journal

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“…For example, endowment with a physical good might trigger a greater sense of attachment than possession of a lottery ticket (Tunçel & Kammitt 2014). Note that attachment differs from sentimental value.…”

Section: External Validitymentioning

confidence: 99%

Strategic Bias Shifting: Herding as a Behaviorally Rational Response to Regret Aversion

Arlen¹,

Tontrup²

2015

Journal of Legal Analysis

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A BS T R AC TIn this article, we show experimentally that individuals can adapt their decision-making to social environments, like markets, and respond strategically to biases, such as regret aversion. We find they can employ herding as a behaviorally rational strategy to improve their expected outcomes and shift anticipated regret when regret would otherwise bias them towards a suboptimal status quo. Herding can improve decision-making when people observe the choices of professionals and businesses, who are less likely to be biased by regret. Focusing on others' choices can allow decision makers to shift their reference point, and their bias, to favor their optimal choice. We find that decision makers exploit this process to shift their bias strategically. They seek information when their reference point is not optimal, but block it otherwise. They also strategically select among different types of decision makers and focus on those that made the better decision. Our research suggests that decision makers employ strategies to reduce the welfare effects of biases in certain domains. Policy responses may support private ordering by seeking to complement, rather than substitute for, these strategies.

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A new meta-analysis on the WTP/WTA disparity

Cited by 159 publications

References 92 publications

A pilot study of loss aversion for drug and non-drug commodities in cocaine users

A pilot study of loss aversion for drug and non-drug commodities in cocaine users

Strategic Bias Shifting: Herding as a Behaviorally Rational Response to Regret Aversion

Strategic Bias Shifting: Herding as a Behaviorally Rational Response to Regret Aversion

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