PSYC2013 Lecture Notes - Lecture 3: Daniel Kahneman, Loss Aversion, Summary Statistics
27 Dec 2018
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Kahneman, knetsch & thaler (1990) had two groups. Condition 1: you are given the mug (shown on screen) as a reward for doing the experiment. Sellers are given decorated mug to keep. Choosers are asked how much they would find as attractive as the mug but never actually given the mug, just shown. Same situation for both but perspectives differ: sellers lose their mug, choosers gain a mug. Bias may be adaptive because losses could threaten survival (the sellers would be losing something that was theirs, but the choosers just saw the process as a game because they never had the mug at their possession) Tversky & kahneman (1981) found many people reject a 50/50 bet in which they can win but lose . A sure gain of (84% choose this) 25% chance to gain , and a 75% chance to gain nothing (16% choose this) We weigh prospect of losses more heavily.
