This paper anlyzes the dynamic nature of rainfall insurance purchasing decisions, specifically looking at whether and why receiving an insurance payout induces a greater chance of purchasing insurance again the next year. Using customer data from the Indian micro-finance institution BASIX, I find that receiving an insurance payout is associated with a 9-22% increased probability of purchasing i...

We examine whether the publication of forecasts concerning the likely future conduct of monetary policy is socially desirable. Introducing a new central bank loss function that accounts for the deviations from announcements, we incorporate forecasts about future inflation and interest rates into a dynamic monetary model. We show that the announcement of future interest rates is always socially ...

“Do the Wealthy Risk More Money? An Experimental Comparison” by Antoni Bosch-Domènech and Joaquim Silvestre Universitat Pompeu Fabra and University of California, Davis. Barcelona Economics WP no 10 August 2003 Are poor people more or less likely to take money risks than wealthy folks? We find that risk attraction is more prevalent among the wealthy when the amounts of money at risk are small (...

A body of qualitative evidence shows that loss aversion, a phenomenon formalized in prospect theory, can explain a variety of field and experimental data. Quantifications of loss aversion are, however, hindered by the absence of a general preference-based method to elicit the utility for gains and losses simultaneously. This paper proposes such a method and uses it to measure loss aversion in a...

This paper consider optimization decision-making of closed-loop supply chain based on revenue sharing contract and prospect theory, and study the effect of lose aversion on the performance of closed-loop supply chain. We establish a decision-making model for the closed-loop supply chain which consists a loss averse retailer and a loss averse manufacturer. Through the analysis of this model unde...

Loss aversion in choice is commonly assumed to arise from the anticipation that losses have a greater effect on feelings than gains, but evidence for this assumption in research on judged feelings is mixed. We argue that loss aversion is present in judged feelings when people compare gains and losses and assess them on a common scale. But many situations in which people judge and express their ...

I use data on individual pay and output from Safelite Corp. to estimate a principal-agent model with moral hazard in which the agent has preferences that approximate various specifications of reference dependence, diminishing sensitivity, and loss aversion, as well as the standard case of CARA utility. Estimating the preference parameters via GMM on the incentive and participation constraints s...

Objective(s): Cucurbitacins exhibit a range of anti-cancer functions. We investigated the effects of cucurbitacins D, E, and I purified from Ecballium elaterium (L.) A. Rich fruits on some apoptotic and autophagy genes in human gastric cancer cell line AGS. Materials and Methods: Using quantitative reverse transcription PCR (qRT-PCR), the expression of LC3, VEGF, BAX, caspase-3, and c-MYC genes...