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IntroductionPrevious empirical research in the social sciences suggests sizable differences across religious denominations for various outcomes of interest, such as educational attainment, marital stability, wealth, or fertility. A small body of previous experimental literature has investigated possible differences in economic preference parameters (including time preference and risk attitude) between religious denominations that might explain those differences.MethodsThis research adds to the extant literature on religion and preferences by including information on subjects’ Big Five personality traits and analyzing potential correlations with loss aversion. It combines experimental data from incentivized choices with information on religious affiliation during high school and Big Five personality traits to test for possible correlations of religious denomination with risk attitude, time preference, and loss aversion, using Bayesian analysis of variance (ANOVA) and Bayesian regression analysis.ResultsBayesian ANOVA results suggest no preference differences between the religions analyzed in this research. When controlling for Big Five personality traits and a host of other background variables, Bayesian regression results suggest no effects of either religious affiliation or Big Five personality traits measures on the three economic preference parameters analyzed here.DiscussionThese findings highlight the complexity of the relationship between religion, personality traits, and economic preference parameters, suggesting that previously observed differences may be influenced by the preference measures used or other unobserved factors.

This study aims to integrate meta-analysis into agent-based models and provide foundational insights into biased agent interactions. It delves deeply into the effects of various behavioral biases such as anchoring, disposition effect, loss aversion, and others on market dynamics and investor decisions. Using agent-based models, it presents simulations of market scenarios and investor behaviors, emphasizing the impact of individual decisions on market dynamics. The innovative approach of this study lies in integrating behavioral finance theories with real market data, offering a nuanced analysis of market behaviors. This work contributes a new perspective to behavioral finance and encourages the use of agent-based models to deepen our understanding of market dynamics and investor behaviors, which can be helpful in financial market analysis and policy-making. This study aims to provide a foundational framework for those looking to integrate meta-analysis into agent-based models and explore biased agent behaviors. The findings demonstrate the ability to model the interactions of loss aversion, disposition effect, and anchoring and adjustment bias taking into account agents' socio-demographic and psychological factors, as close to the real world as possible. The results offer highly favorable forecasts for modeling human behaviors more accurately in portfolio optimizations and for expanding the applications of Generalized Artificial Intelligence in financial market implementations.

In the ever-evolving realm of finance, investors have a myriad of strategies at their disposal to effectively and cleverly allocate their wealth in the expansive financial market. Among these strategies, portfolio optimization emerges as a prominent approach used by individuals seeking to mitigate the inherent risks that accompany investments. Portfolio optimization entails the selection of the optimal combination of securities and their proportions to achieve lower risk and higher return. To delve deeper into the decision-making process of investors and assess the impact of psychology on their choices, behavioral finance biases can be introduced into the portfolio optimization model. One such bias is regret, which refers to the feeling of remorse that can induce hesitation in making significant decisions and avoiding actions that may lead to unfavorable investment outcomes. It is not uncommon for investors to hold onto losing investments for extended periods, reluctant to acknowledge mistakes and accept losses due to this behavioral tendency. Interestingly, in their quest to sidestep regret, investors may inadvertently overlook potential opportunities. This research article aims to undertake an in-depth examination of 41 publications from the past two decades, providing a comprehensive review of the models and applications proposed for the regret approach in portfolio optimization. The study categorizes these methods into accurate and approximate models, scrutinizing their respective timeframes and exploring additional constraints that are considered. Utilizing this article will provide investors with insights into the latest research advancements in the realm of regret, familiarize them with influential authors in the field, and offer a glimpse into the future direction of this area of study. The extensive review findings indicate a growth in the adoption of the regret approach in the past few years and its advancements in portfolio optimization.

This study analyses the role of trade credit insurance and the insuring strategy of the retailer and the manufacturer in a capital-constrained supply chain with one retailer, one manufacturer, and one insurer. We model the interaction among these three participants as a two-level Stackelberg game and explore their operational and financial decisions. We find that trade credit insurance is adopted when the manufacturer's loss aversion is high or the retailer's initial capital is low. The adoption of trade credit insurance improves the order quantity of the retailer, the performance of each supply chain participant, and supply chain efficiency. However, it also increases the bankruptcy risk of the retailer and the instability of the entire supply chain. In addition, the application of trade credit insurance by the manufacturer alone is more beneficial to the manufacturer, insurer, and entire supply chain as it creates better performance for them. Conversely, the purchase of trade credit insurance by the retailer is more desirable to the retailer as it yields not only a higher profit but also a lower bankruptcy risk. [ABSTRACT FROM AUTHOR]

The article focuses on the technological advancements in Point of Interest (POI) recommendation systems for smart and sustainable cities. Topics discussed include the integration of Artificial Intelligence (AI), blockchain, and big data to enhance urban planning, the role of POI systems in promoting sustainable mobility and local businesses, and various studies exploring the challenges and innovations in implementing these systems across different regions.

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract Loss aversion, or the greater sensitivity to losses than equivalent gains, has been shown to vary across individuals, but has yet to be thoroughly examined in relation to Attention-Deficit/Hyperactivity Disorder (ADHD) symptomatology. Examining factors related to decision-making in ADHD has important implications for interventions as well as understanding engagement in risky behavior. Undergraduates (N = 98; 73% women) completed questionnaires measuring ADHD symptomatology, loss aversion, and gambling preference as well as the Balloon Analog Risk Task. Individuals with high ADHD symptomatology (n = 50) were less loss averse than those low in symptomatology, even after controlling for individual differences in risk taking and gambling preference. Inattention symptoms were not related to loss aversion after controlling for hyperactivity/impulsivity, risk taking, and gambling preference. Greater hyperactivity/impulsivity was related to less loss aversion, even after covariates were controlled. It is unclear if group differences were the result of reduced sensitivity to losses, increased attraction to gains, or both. Future research should examine if reduced loss aversion in those with high ADHD symptomatology replicates using other decision-making paradigms and whether or not loss aversion mediates the relationship between ADHD and risk-taking behavior.

Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the correctness of their decisions. However, there is uncertainty in financial markets. This uncertainty does not allow for mathematical calculations. In such case, feelings get involved in the decision process.

PURPOSE This study examined whether K-league fans’ responses to game outcomes align with reference-dependent preference and loss aversion principles. METHODS We collected user comments from the 2023 K-league game highlights videos on YouTube. We identified each user’s supporting team and excluded neutral fans’ comments. Sentiment analysis using KoBERT was applied, and estimated sentiment scores served as dependent variables. We performed panel regression to test whether unexpected wins and losses generate positive and negative comments. RESULTS First, an unexpected win generates more positive comments, and an unexpected loss generates more negative comments; a reference-dependent preference exists. Second, the difference between the coefficient on upset win and the absolute value of the coefficient on upset loss is not statistically different; loss aversion does not exist. CONCLUSIONS The findings derive a deeper understanding of sports viewership and explain the difference between domestic and overseas sports fans. Also, the findings provide insights into the domestic professional sports business.

As economic fluctuations and market uncertainty intensify, supply chain members face enormous challenges. To explore the role of revenue-sharing contracts in supply chain members with different risk preferences, we study the risk-averse two-stage supply chain coordination in a revenue-sharing contract under three different scenarios: the supplier is risk-averse and the retailer is risk-neutral, or the retailer is risk-averse and the supplier is risk-neutral, or both are risk-averse. We find that the revenue-sharing contract mechanism allows the supplier to offer a lower wholesale price, effectively bearing part of the retailer's cost risk. In return, the retailer compensates the supplier with a larger portion of their revenue, and the lower wholesale price also stimulates the retailer's desire to order more products. In addition, risk aversion always reduces the optimal order quantity in the supply chain. Interestingly, when the retailer's risk aversion level is low, the supplier charges a higher wholesale price under the risk-averse supply chain than that under the risk-neutral supply chain. However, if the retailer's risk aversion level is high enough, the supplier should charge a lower price to stimulate the retailer under the risk-averse supply chain to retain the order size to maintain the channel profit. [ABSTRACT FROM AUTHOR]

This study evaluates the changes in the expenditure–price elasticities of foreign tourists in the summer periods of 2019, 2020, and 2021. We first develop a theoretical characterization that combines microeconomic, loss aversion, price inequality and precautionary savings theories. Next, exploiting microdata for more than 34,000 foreign tourists visiting Spain, we estimate OLS and quantile regressions to empirically examine the expenditure elasticities with respect to the prices of transport services, leisure activities and bars and restaurants at the destination (17 regions). We find that (i) the expenditure–price elasticity of transportation (leisure activities) increases (decreases) during the pandemic, whereas that of bars and restaurants remains unchanged, (ii) foreign tourists are comparatively less expenditure–price elastic at high expenditure levels in transportation and bars and restaurants, and (iii) expenditure–price elasticities are highly heterogeneous depending on the origin country. Managerial and theoretical implications of the findings for firms' pricing strategies are discussed. [ABSTRACT FROM AUTHOR]

A two‐echelon supply chain with a capital‐constrained retailer is investigated where uncertain demand and defective products are considered. As an intermediate between the retailer and the bank, the supplier provides a credit guarantee for the retailer. Two credit guarantee schemes are proposed, guarantee for quality and guarantee for both quality and sales (GQS). The partners' optimal decisions under different schemes are derived via Stackelberg game. As a critical influential factor to determine the financing cost, the loan interest rate is carefully examined with respect to its effect on the strategies of both partners. Furthermore, the influence of loss aversion on the participants' decisions is examined. Based on the theoretical analysis and numerical experiments, the following conclusions are drawn. First, the retailer's optimal order quantity is independent of the supplier's decision on the technology level, whereas the supplier's optimal decision is affected by the retailer's order size. Second, financing is not always attractive to the retailer, and is adopted only with a reasonably lower loan interest rate. Third, the GQS scheme is a win–win strategy for the supply chain if the loan interest rate is relatively high. Finally, the loss‐averse strategy is more robust for the retailer when the demand is volatile and unpredictable. [ABSTRACT FROM AUTHOR]

Northern European nations are at the forefront of renewable energy adoption but face challenges in optimizing energy conversion efficiency. There is a lack of detailed understanding of how behavioral factors affect the efficiency of renewable energy conversion in these countries. This study aims to evaluate and compare the renewable energy conversion efficiency of Northern European countries, intending to inform strategic policy making and identify best practices for technology deployment in the renewable energy sector. Employing a Data Envelopment Analysis (DEA) model, the study integrates behavioral economic parameters—specifically, the aversion loss and gain significance coefficients—to assess the efficiency of renewable energy conversion, accounting for psychological factors in decision making. A comprehensive sensitivity analysis was conducted, varying the gain significance coefficient while maintaining the aversion loss coefficient at constant levels. This experiment was designed to observe the impact of behavioral parameters on the efficiency ranking of each country. The analysis revealed that Latvia consistently ranked highest in efficiency, irrespective of the gain significance valuation, whereas Iceland consistently ranked lowest. Other countries demonstrated varying efficiency rankings with changes in gain significance, indicating different behavioral economic influences on their renewable energy sectors. Theoretically, the study enhances the DEA framework by integrating behavioral economics, offering a more holistic view of efficiency in renewable energy. Practically, it provides a benchmarking perspective that can guide policy and investment in renewable energy, with sensitivity analysis underscoring the importance of considering behavioral factors. The research offers a practical tool for policymakers and energy stakeholders to align renewable energy strategies with behavioral incentives, aiming to improve the adoption and effectiveness of these initiatives. [ABSTRACT FROM AUTHOR]

Current studies on the discrepancy between entrepreneurial intention and action have obtained some interesting findings. However, attention to the factors embedded in entrepreneurship uncertainty remains lacking. This study constructs a dual mediation model from the perspective of loss aversion and affordable loss and examines the roles of loss aversion and affordable loss in explaining the discrepancy with a survey data from 235 individuals. The results indicate that loss aversion and affordable loss mediate the effect of entrepreneurial intention on taking entrepreneurial action, and the mediating effect of affordable loss is stronger than that of loss aversion. Being faced with unknown outcomes of entrepreneurial activities, individuals' loss aversion hinders them from taking entrepreneurial actions, whereas affordable loss can help them overcome the hindering effect and improve the translation from entrepreneurial intention to concrete actions. This study not only provides theoretical support for addressing the discrepancy between entrepreneurial intention and action but also offers some specific practical implications for actors to transform entrepreneurial intention into concrete actions. [ABSTRACT FROM AUTHOR]

The aim of this paper is to propose a preferences representation model where ambiguity attitudes can be exogenous events or past experience-dependent. We adapt the Recursive Smooth Ambiguity model proposed by Klibanoff (Journal of Economic Theory 144:930-976, 2009) by introducing past experience described by a sequence of neutral events occurring up to the moment of the decision. These neutral events do not provide any information on the true process, but are likely to strengthen or weaken the decision-maker's ambiguity aversion degree by modifying emotions. Our model can explain some observed behaviors and market inefficiencies. We propose two illustrations. First, we provide a behavioral explanation for the decrease in influenza vaccination in France that followed the H1N1 crisis in 2009–2010. Second, we contribute to the broad literature on the annuity puzzle by introducing the impact of emotions on ambiguity attitudes. [ABSTRACT FROM AUTHOR]

Transboundary water pollution is a persistent problem in China. The Chinese government has been tentatively experimenting with eco-compensation schemes for decades to protect and sustainably use ecosystem services. However, compensation standards and pollutant reduction are the key problems in these eco-compensation schemes. This study proposes a coordination decision-making model that incorporates a typical Stackelberg game between the administrator and individual region of a river basin to solve the problems. Based on prospect theory, the model considers the bidirectional eco-compensation mechanism, the different risk preference, and the loss aversion degree of the administrator and individual regions of a river basin to compute an optimal compensation standard. Given the compensation standard, the individual regions can decide their optimal pollution reductions. Taking the Taihu lake basin as a case, the conclusions were drawn as follows. The optimal compensation standard is 3394 yuan/ton, and the optimal regional pollutant reductions of Zhejiang, Shanghai for Jiangsu are 1854 tons and 270 tons separately. The results of the coefficient sensitivity analysis show that, according to the risk preference and loss aversion degree of individual regionals, the administrator can adjust compensation standard to promote regions to reduce pollutants and maximize the utility of eco-compensation scheme. [ABSTRACT FROM AUTHOR]

This article explores the equity preferences of children and adults, comparing their behaviors in different contexts. The study found that children tend to behave more selfishly in first-party situations and more fairly in third-party situations compared to adults. Both children and adults exhibit aversion to disadvantageous inequity in third-party situations, but they have distinct preferences for advantageous inequity in first-party situations. The study also examined the impact of loss-gain framing on fairness behaviors and found that it influenced children's and adults' decision-making differently. The findings contribute to a deeper understanding of children's social preferences and their developmental directions. [Extracted from the article]

Individuals' decisions under risk tend to be in line with the notion that "losses loom larger than gains." This loss aversion in decision making is commonly understood as a stable individual preference that is manifested across different contexts. The presumed stability and generality, which underlies the prominence of loss aversion in the literature at large, has been recently questioned by studies reporting how loss aversion can disappear, and even reverse, as a function of the choice context. The present study investigated whether loss aversion reflects a trait-like attitude of avoiding losses or rather individuals' adaptability to different contexts. We report three experiments investigating the within-subject context sensitivity of loss aversion in a two-alternative forced-choice task. Our results show that the choice context can shift people's loss aversion, though somewhat inconsistently. Moreover, individual estimates of loss aversion are shown to have a considerable degree of stability. Altogether, these results indicate that even though the absolute value of loss aversion can be affected by external factors such as the choice context, estimates of people's loss aversion still capture the relative dispositions toward gains and losses across individuals. [ABSTRACT FROM AUTHOR]

Objective: Very little is known about the circumstances under which hyperglycaemia aversion develops and is maintained. The present study aimed to identify psychological factors involved in the process of hyperglycaemia aversion and to understand how it affects people's self‐management of type 1 diabetes. Design: Qualitative, in‐depth interviews were used. Methods: A constructivist grounded theory study, using semi‐structured participant interviews, was undertaken to build a theoretical model of the process of hyperglycaemia aversion. Results: Eighteen participants were interviewed. Fifteen were considered hyperglycaemia averse and included in the analysis. A theoretical model was developed to describe and explain processes involved in hyperglycaemia aversion. Many participants held very high standards for themselves and often had a strong preference for control. While some participants described anxiety associated with higher blood glucose, the most proximal driver of their approach was self‐criticism and frustration associated with not meeting their own high standards for blood glucose. A number of attentional processes and beliefs, mostly related to hypoglycaemia, maintained and reinforced their blood glucose preference. Diabetes technology served as an enabler, raiser of standards, and additional critical judge of participants' hyperglycaemia aversion. Conclusions: The trans‐diagnostic concept of emotional over‐control is used to understand the proposed model of processes of hyperglycaemia aversion. The present study offers new insight which will aid clinicians in identifying and supporting those who may be at risk of psychological distress and harm associated with a preference for avoidance of higher blood glucose levels. [ABSTRACT FROM AUTHOR]

In this study, we compare ambiguity attitudes—ambiguity aversion and ambiguity-generated insensitivity (a-insensitivity)—toward natural and artificial sources of ambiguity in gain and loss domains with the participation of individuals with various attributes. In our experiment, we use precipitation during the rainy season as a natural source of ambiguity and the Ellsberg-type box as an artificial source. We find that people are more a-insensitive toward the natural source than the artificial source, even though the outcomes are identical. Additionally, people with low cognitive reflection ability are more a-insensitive than those with high cognitive reflection ability. Thus, people with low cognitive reflection ability have more difficulty in identifying likelihood under ambiguity and tend to view the likelihood of all uncertain events to be equal. Furthermore, we examine the relationships between ambiguity attitudes and real-world behaviors with regard to flood preparedness. In the group with high cognitive reflection ability, people with higher a-insensitivity are less likely to adopt flood preparedness behaviors in the gain domain of the natural source. However, we do not find any relationship between ambiguity attitudes and flood preparedness behaviors in the artificial source. Thus, applying ambiguity attitudes toward natural sources is worth considering when explaining real-world behaviors based on ambiguity attitudes. [ABSTRACT FROM AUTHOR]

This paper investigates a dynamic liability-driven investment policy for defined-benefit (DB) plans by incorporating the loss aversion of a sponsor, who is assumed to be more sensitive to underfunding than overfunding. Through the lens of prospect theory, we first set up a loss-aversion utility function for a sponsor whose utility depends on the funding ratio in each period, obtained from stochastic processes of pension assets and liabilities. We then construct a multi-horizon dynamic control optimization problem to find the optimal investment strategy that maximizes the expected utility of the plan sponsor. A genetic algorithm is employed to provide a numerical solution for our nonlinear dynamic optimization problem. Our results suggest that the overall paths of the optimal equity allocation decline as the age of a plan participant reaches retirement. We also find that the equity portion of the portfolio increases when a sponsor is less loss-averse or the contribution rate is lower. [ABSTRACT FROM AUTHOR]

This paper takes a two-level green supply chain composed of a manufacturer and a retailer as the research object, and investigates the influence of loss aversion preference and corporate social responsibility (CSR) on the optimal pricing, green decision-making and performance of supply chain members. Firstly, the basic game models under three different decision-making situations are constructed, and the optimal decision of the above models is obtained. Secondly, the results of different decision-making models are compared, and the influence of corporate social responsibility level and loss aversion preference on supply chain decision-making and performance is analyzed. Finally, in order to improve the performance of supply chain, a combined contract of revenue sharing and responsibility sharing is designed to coordinate the green supply chain under different preferences of the manufacturer. The results show that the retailer undertaking CSR is conducive to the green development of the supply chain, but the loss aversion preference of the manufacturer will have a negative impact on the supply chain members. In addition, when the manufacturer has rational preference, with the improvement of the retailer's CSR level, the effective coordination interval length of coordination factors under combined contracts increases, and the coordination flexibility of supply chain increases. When the manufacturer loss aversion preference, the upper and lower limits of the coordination factor of the combined contract will increase with the increase of loss aversion preference, and the length of the coordination interval will decrease, which will lead to the difficulty of cooperation among supply chain members. [ABSTRACT FROM AUTHOR]

Intolerance of uncertainty (IU) has been suggested to be associated with emotional perceptions and evaluations. Several studies have also revealed that IU is related to cognitive preferences, in particular gain-relevant risk preference. Nevertheless, it is still unclear whether both prospective and inhibitory IU, two dimensions of IU, predict gain-related and moreover, loss-relevant risky preference. More importantly, it is unknown whether the associations between IU and risk preference are modulated by biological factors (e.g., genes). Therefore, the current study investigated whether prospective and inhibitory IU were associated with gain-/loss-related risk preference and whether the associations were modulated by an impulsivity control-related gene, tryptophan hydroxylase 1 (TPH1) gene (A779C, rs1799913) through recruiting 222 healthy Chinese participants. Results showed that prospective IU was correlated with gain-relevant risk averse. There was not a significant association between IU and loss-relevant risk preference. Nevertheless, further analysis revealed that the association was modulated by the TPH1 genotype. Prospective and inhibitory IU predicted loss-relevant risk averse specifically for TPH1 AC genotype carriers but not for other genotype carriers (i.e., AA or CC). The findings emphasize the associations between IU and risk preference depending on frame and genetic variance. [ABSTRACT FROM AUTHOR]

Despite the fact that insight is a crucial component of creative thought, the means by which it is cultivated remain unknown. The effects of learning traits on insight, specifically, has not been the subject of investigation in pertinent research. This study quantitatively examines the effects of individual differences in learning traits estimated using a Q-learning model within the reinforcement learning framework and evaluates their effects on insight problem solving in two tasks, the 8-coin and 9-dot problems, which fall under the umbrella term "spatial insight problems." Although the learning characteristics of the two problems were different, the results showed that there was a transfer of learning between them. In particular, performance on the insight tasks improved with increasing experience. Moreover, loss-taking, as opposed to loss aversion, had a significant effect on performance in both tasks, depending on the amount of experience one had. It is hypothesized that loss acceptance facilitates analogical transfer between the two tasks and improves performance. In addition, this is one of the few studies that attempted to analyze insight problems using a computational approach. This approach allows the identification of the underlying learning parameters for insight problem solving. [ABSTRACT FROM AUTHOR]

Introduction: determining the optimal stopping point in sequential decision-making scenarios is crucial for maximizing rewards and minimizing costs. Traditional models like the original Brickman Principle often simplify this process by assuming fixed critical values and equal probabilities at each decision stage. These assumptions may not accurately reflect real-world complexities, where costs can be cumulative and probabilities variable. Objective: this work seeks to enhance the Brickman Principle by including cumulative punishment elements and non-uniform probability distributions, therefore improving its capacity to accurately represent the intricacies of real-world decision-making. Method: through a rigorous experimental study, we evaluate the impact of these modifications on optimal stopping rules and expected profits. Results: in line with Prospect Theory’s emphasis on loss aversion, the results reveal a distinct pattern of risk-averse behavior, with most participants choosing to stop sooner in the sequence to avoid growing fines. Furthermore, we saw substantial variation in both the termination points and anticipated earnings across participants, suggesting that individual disparities in risk tolerance and decision-making approaches are crucial in influencing results. Discussion: this research contributes to the understanding of human decision-making processes and offers a robust framework for various applications, including financial investments, job offers, and purchasing decisions. [ABSTRACT FROM AUTHOR]

The literature on emotion and risk-taking is large and heterogeneous. Whereas some studies have found that positive emotions increase risk-taking and negative emotions increase risk aversion, others have found just the opposite. In this study, we investigated this question in the context of a risky decision-making task with embedded high-resolution sampling of participants’ subjective emotional valence. Across two large-scale experiments (N = 329 and 524), we consistently found evidence for a negative association between self-reported emotional valence and risk-taking behaviors. That is, more negative subjective affect was associated with increased riskseeking, and more positive subjective affect was associated with increased risk aversion. This effect was evident both when we compared participants with different levels of mean emotional valence as well as when we considered within-participant emotional fluctuations over the course of the task. Prospect-theoretic computational modeling analyses suggested that both between- and within-participant effects were driven by an effect of emotional valence on the curvature of the subjective utility function (i.e., increased risk tolerance in more negative emotional states), as well as by an effect of within-person emotion fluctuations on loss aversion. We interpret findings in terms of a tendency for participants in negative emotional states to choose high-risk, high-reward options in an attempt to improve their emotional state. [ABSTRACT FROM AUTHOR]

• Expected utility theory is not appropriate for understanding the behavior of low-income farmers. • Lexicographic ordering has the advantages of procedural rationality and the behavioral focus on thresholds. • Lexicographic ordering is readily adaptable to the narrative that low income farmers put safety first. • Focusing on safety does not imply avoidance of variance-increasing techniques. As Richard Day explained, expected utility theory suffers from procedural irrationality. This and other problems are illustrated here in the context of decision-making among low-income farmers. Farmers in developing countries are commonly thought to underinvest in modern techniques because their low incomes make them especially risk averse. In addition to the procedural leap of faith, highly restrictive assumptions are needed to apply expected utility theory to the problem. Nor does expected utility theory, as usually prescribed, fit the narrative of loss aversion. The reader is introduced to a procedurally rational substitute called lexicographic safety first. The model is illustrated for the case of rice fertilization in the Philippines, and policy implications are drawn. To illustrate the potential appeal of lexicographic ordering for other applications involving thresholds, a lexicographic model of rational addiction is also provided. [ABSTRACT FROM AUTHOR]

Risk tolerance mediated the relationship between investment decisions and the variables of representativeness, mental accounting, overconfidence, also loss aversion, which was the objective of this study. This is a survey-based investigation. A random sampling technique was employed to select 150 respondents for the sample in this research. Assessing the value of outer loading, validity and reliability, R square, path coefficients, specific indirect effects, and total effects through data analysis utilising SmartPLS. SEM (Structural Equation Model) analysis reveals that the overconfidence variable mediates a significant indirect impact of risk tolerance on investment decision. Besides, the investment decision is impact by the representativeness bias variable, which is mediated by risk tolerance. [ABSTRACT FROM AUTHOR]

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Online product pricing is an important factor that affects the purchase of customers and the earnings of e‐commerce platform enterprises. It has an increasingly prominent influence on consumers' purchasing decisions. To study the influence of customers' anchoring psychology and product pricing on customers' purchasing behaviors, this paper proposes a pricing model that considers online consumers to be anchored by the product price and sales. The cognitive bias of online consumers is described by a utility function based on an anchoring‐adjustment heuristic, and consumer choice behavior and an online product pricing strategy are studied with a multinomial logit model. Then, it studies the influence of the anchoring point and anchoring degree on optimal pricing, sales and profit. In particular, when consumers are anchored only by sales of goods, the optimal solution is monotonic with respect to the anchoring degree. However, when consumers are anchored by both price and sales, both factors affect consumer behaviors and produce more complex results. This paper provides a flexible pricing mechanism for platform enterprises, and it can provide a theoretical basis and decision support for dynamic pricing of platform enterprises based on historical consumption data. [ABSTRACT FROM AUTHOR]

Copyright of Društvena Istraživanja is the property of Institute of Social Sciences Ivo Pilar and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of RAIMED: Revista de Administração IMED is the property of RAIMED: Revista de Administracao IMED and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Introduction/Main Objectives: This research investigates the effect of prepayment contract frames and feedback incentives in mitigating budgetary slack. Background Problems: Clawback is an incentive scheme based on the endowment concept that has recently drawn researchers’ concerns. The literature suggests emphasizing the endowment and loss aversion concepts. This research examines these two concepts with one test model. Novelty: This research presents the preliminary manipulation role of hybrid clawback as one of the prepayment contract frames that are smoother and without penalty provisions. This study also examines the interaction between the concept of endowment and loss aversion in one test model. Research Methods: This research applied a field experiment with a 3 × 2 between-subject design. Finding/Results: This research found that prepayment contract frames require motivation from an adequate formal control system through frequent feedback to mitigate the slack. The findings prove that the capability of prepayment contract frames to minimize slack would be more effective after the frequency of the feedback has been moderated. Conclusion: The hybrid clawback could be a smoother alternative compensation scheme that is just as effective as a simple clawback, but without any penalty provisions. The effectiveness of a low feedback frequency could be increased to equal the efficacy of a high feedback frequency when assisted by prepayment contract frames. [ABSTRACT FROM AUTHOR]

This paper aims to explore the profound impact of loss avoidance on individual investment decisions, specifically focusing on its influence on risk loss aversion--a core concept in behavioral economics. This concept posits that individuals experience greater psychological consequences from losses than from the avoidance of equivalent gains. The study investigates how loss avoidance and risk aversion interact and influence investment choices. The research methods combine surveys and data analysis to examine the complex relationship between loss avoidance and risk. By analyzing real-world investment decisions across various market conditions, the study seeks to identify behavioral patterns and trends that emerge when individuals face potential losses in their investment portfolios. The research design also considers demographic factors, financial knowledge, and other relevant variables to provide a broader understanding of the elements influencing investment decisions. Ultimately, this study aims to enhance our understanding of the psychological factors that drive individual investment behavior. [ABSTRACT FROM AUTHOR]

Purpose: The disposition effect remains one of the most significant investor behavior puzzles. This study aims to consolidate the knowledge, explore current dynamics, elicit trends and offer future research directions to demystify the disposition effect. Design/methodology/approach: This study applies the hybrid review method. It first used bibliometric analysis (212 documents), followed by content analysis (54 articles) to analyze the breadth and depth of literature on the disposition effect. Findings: This study presents performance analysis and science mapping. It identifies five main research streams: evidence, implications and mitigation techniques; theoretical explanations; investor biases and hedonic framing; attributes, beliefs and preferences; and implications for asset pricing and market efficiency. This study further offers future research directions for disposition effect research. Research limitations/implications: This study deploys sequential bibliometric and content analysis. A meta-analysis of quantitative articles could provide specific insights regarding the disposition effect. Besides, this study is based on Scopus-indexed journals only. Practical implications: This study benefits investors and portfolio managers as they learn effective ways to guard against the disposition effect. Policymakers may tweak tax laws to incentivize long-term holding, and regulators can run investor education campaigns to minimize the disposition effect's consequences effectively. Originality/value: To the best of the authors' knowledge, this is probably the first hybrid review of high-quality, contemporary articles on the disposition effect that offers science mapping, research streams, future research directions and a succinct summary of theories, contexts, characteristics and methods deployed in the field of research. [ABSTRACT FROM AUTHOR]

To date, the studies on managerial loss aversion have produced contradictory findings, making it impossible to: (i) identify the ultimate impact of managerial loss aversion on the value that organisations create for themselves and for their stakeholders, and (ii) mitigate the effect of managerial loss aversion to improve corporate value creation. With the aim of filling this gap, the authors of this paper first performed a Systematic Literature Review (SLR), resulting in 65 relevant papers. The 65 papers were then analysed through a Thematic Analysis (TA), which was aimed at isolating and revising the single effects of managerial loss aversion on the corporate value creation process. Once it became clear when and how managerial loss aversion leads to negative impacts on corporate value creation (such as suboptimal investments in corporate social responsibility, short-term-oriented budget expenditures, illegal corporate conduct in favourable contexts, and low demand for audit quality), a novel theoretical framework was built. This framework proposes some preliminary approaches to mitigate these detrimental effects. In particular, future empirical research may operationalise potential debiasing strategies, derived from critical analysis of the literature, to reduce managerial loss aversion in different business settings, thereby improving corporate value creation. [ABSTRACT FROM AUTHOR]

The aim of this paper is to predict financing methods to support decision-making for startup founders and their investors. Initially, factors influencing the choice of financing methods, including structural, demographic, and behavioral factors, were identified. These factors were then assessed using a questionnaire consisting of 32 items, which was sent online to startup founders. Based on 70 responses received and using algorithms including binary matching, classification chains, label power set, K-nearest neighbors, extreme gradient boosting, cluster boosting algorithm and random forest, the financing methods chosen by startups were predicted. Comparison of the results from the algorithms shows that the boosting ensemble algorithm, with an F1 score of 89 and precison of 85%, predicts the selected financing methods on the test dataset better than other algorithms. Additionally, data analysis indicates that startups are more inclined towards personal funding methods, which aligns with the prevalence of loss aversion bias among entrepreneurs. Following loss aversion, overconfidence, anchoring, and illusion of control biases were the most frequent among entrepreneurs. [ABSTRACT FROM AUTHOR]

We consider consumers' loss aversion in environmental quality and develop a two‐period game theoretical model to investigate the optimal pricing and environmental quality decisions for a green supply chain where a manufacturer sells products to consumers through a retailer. We then introduce a two‐part tariff contract to coordinate the supply chain for both periods. We suggest that optimal decisions in the second period depend on the reference point of the first period in the decentralized supply chain. A higher reference point leads to the increased environmental quality of products, prices, and profits of supply chain members in the second period. However, when the reference point is sufficiently high, the environmental quality will be lower to avoid excessive environmental investment costs. Furthermore, consumers' loss aversion reduces the environmental quality of products when the reference point is low. As consumers' loss aversion increases, the manufacturer's profit rises, while the wholesale and retail prices and the retailer's profit show a decreasing and then increasing trend. Finally, we find that a two‐part tariff contract enables the two‐period supply chain to be coordinated and achieve Pareto improvements in profit and environmental quality. This study sheds valuable light on understanding consumer environmental preferences and irrational behavior for supply chain decision‐making and green product design. [ABSTRACT FROM AUTHOR]

Framing of the research. Several governments have introduced policies to foster the usage of digital payments by consumers, with the goal of curbing tax evasion. Nevertheless, cash is still predominant. This raises questions about the factors that can promote the usage of digital payments by consumers. Purpose of the paper. This paper aims at investigating the factors affecting the adoption of digital payments by Italian consumers, extending the unified theory of acceptance and use of technology in a consumer context (UTAUT2) with three constructs that are relevant when analyzing this topic, namely the role of government incentives, the concerns related to privacy, and the degree of aversion towards tax evasion. Methodology. To empirically assess the proposed research model, we gathered data in Italy through a web-based survey and analyzed them using Partial Least Squares-Structural Equation Modeling. Results. Findings confirm the UTAUT2 model, except for price value, which is found to be insignificant. Government incentives and tax evasion aversion have a significant positive impact on the behavioral intention to adopt digital payments, whereas privacy concerns have a significant negative effect. Research limitations. The main limitation of this study concerns data gathering, as it was conducted using the Computer-Assisted Web Interviewing methodology, which targets consumers that are already familiar with digital instruments. Practical implications. The paper highlights the factors that both digital payment providers and public institutions may leverage to foster the adoption of digital payments by consumers. Originality of the paper. To the best of our knowledge, this study is unique as it examines the adoption of digital payments by Italian consumers, extending the framework to prepaid, credit, and debit cards, instead of considering mobile payments alone. [ABSTRACT FROM AUTHOR]