Authors
Amos Tversky, Daniel Kahneman
Publication date
1991/11/1
Journal
The quarterly journal of economics
Volume
106
Issue
4
Pages
1039-1061
Publisher
MIT Press
Description
Much experimental evidence indicates that choice depends on the status quo or reference level: changes of reference point often lead to reversals of preference. We present a reference-dependent theory of consumer choice, which explains such effects by a deformation of indifference curves about the reference point. The central assumption of the theory is that losses and disadvantages have greater impact on preferences than gains and advantages. Implications of loss aversion for economic behavior are considered.
Total citations
Scholar articles
A Tversky, D Kahneman - The quarterly journal of economics, 1991
A Tversky, D Kahneman - The Quarterly Journal of Economics, 1991
A Tversky, D Kahneman - Journal of Economic Literature