title: When gains loom larger than losses: reversed loss aversion for small amounts of money.
abstract: Previous research has generally shown that people are loss averse; that is, they weigh losses more heavily than gains. In a series of three experiments, we found that for small outcomes, this pattern is reversed, and gains loom larger than losses. We explain this reversal on the basis of (a) the hedonic principle, which states that individuals are motivated to maximize pleasure and to minimize pain, and (b) the assumption that small losses are more easily discounted cognitively than large losses are.
authors.affiliation: Social and Organizational Psychology, Leiden University-Institute of Psychological Research, Leiden, The Netherlands. sharinck@fsw.leidenuniv.nl
authors.forename: Fieke
authors.initials: F
authors.lastname: Harinck
authors.forename: Eric
authors.initials: E
authors.lastname: Van Dijk
authors.forename: Ilja
authors.initials: I
authors.lastname: Van Beest
authors.forename: Paul
authors.initials: P
authors.lastname: Mersmann
mesh_terms: D000293:Adolescent; D003657:Decision Making; D004467:Economics; D006801:Humans; D012919:Social Behavior