Quotation Stephens, Thomas Alexander, Tyran, Jean-Robert. 2012. "At least I didn't lose money" Nominal Loss Aversion Shapes Evaluations of Housing Transactions.


RIS


BibTeX

Abstract

Loss aversion is one of the most robust findings to have emerged from behavioral economics. Surprisingly little attention, however, has been devoted to nominal loss aversion, the interaction of loss aversion and money illusion. People tend to think of transactions in terms of their nominal (monetary) values. Real losses may therefore loom larger in people's minds when they lose money than when real losses are hidden by purely nominal gains. Using a survey experiment with a large and heterogeneous sample, we show that evaluations of housing transactions are systematically biased by purely nominal gains versus losses.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title "At least I didn't lose money" Nominal Loss Aversion Shapes Evaluations of Housing Transactions
Year 2012
URL http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9198

Associations

People
Stephens, Thomas Alexander (Former researcher)
External
Tyran, Jean-Robert (Universität Wien, Austria)
Organization
Department of Economics (Sausgruber) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
5311 Public finance (Details)
Google Scholar: Search