Is Loss Aversion Costing You Money?

Authors

Tanner Eastmond, Brigham Young University
Dr. Joseph Price, Brigham Young University

Keywords

loss aversion, behavioral phenomenon, stock price

College

Family, Home, and Social Sciences

Department

Economics

Abstract

Loss aversion is a well-documented behavioral phenomenon originally proposed by Kahneman and Tversky (2013). The idea is that people value losses more than they do commensurate gains. Many researchers have examined the effects of loss aversion on an individual level, but many economists think that these effects evaporate in highly competitive situations and when professionals are involved. This study seeks to examine whether individual loss aversion is reflected in aggregate stock prices.

Recommended Citation

Eastmond, Tanner and Price, Dr. Joseph (2018) "Is Loss Aversion Costing You Money?," Journal of Undergraduate Research: Vol. 2018: Iss. 1, Article 41.
Available at: https://scholarsarchive.byu.edu/jur/vol2018/iss1/41