3 resultados para Cumulative Prospect Theory
em Universidad de Alicante
Resumo:
This paper tests the existence of reference dependence and loss aversion in students academic performance. Accordingly, achieving a worse than expected academic performance would have a much stronger effect on students (dis)satisfaction than obtaining a better than expected grade. Although loss aversion is a well-established finding, some authors have demonstrated that it can be moderated diminished, to be precise. Within this line of research, we also examine whether the students emotional response (satisfaction/dissatisfaction) to their performance can be moderated by different musical stimuli. We design an experiment through which we test loss aversion in students performance with three conditions: classical music, heavy music and no music. The empirical application supports the reference-dependence and loss aversion hypotheses (significant at p < 0.05), and the musical stimuli do have an influence on the students state of satisfaction with the grades (at p < 0.05). Analyzing students perceptions is vital to find the way they process information. Particularly, knowing the elements that can favour not only the academic performance of students but also their attitude towards certain results is fundamental. This study demonstrates that musical stimuli can modify the perceptions of a certain academic result: the effects of positive and negative surprises are higher or lower, not only in function of the size of these surprises, but also according to the musical stimulus received.
Resumo:
Based on Tversky and Kahnemans Prospect Theory, we test the existence of reference dependence, loss aversion and diminishing sensitivity in Spanish tourism. To do this, we incorporate the reference-dependent model into a Multinomial Logit Model with Random Parameters -which controls for heterogeneity- and apply it to a sample of vacation choices made by Spaniards. We find that the difference between reference price and actual price is considered to make decisions, confirming that reference dependence exists; that people react more strongly to price increases than to price decreases relative to their reference price, which represents evidence in favor of the loss aversion phenomenon; and that there is diminishing sensitivity for losses only, showing convexity for these negative values.
Resumo:
Purpose This article aims to investigate whether intermediaries reduce loss aversion in the context of a high-involvement non-frequently purchased hedonic product (tourism packages). Design/methodology/approach The study incorporates the reference-dependent model into a multinomial logit model with random parameters, which controls for heterogeneity and allows representation of different correlation patterns between non-independent alternatives. Findings Differentiated loss aversion is found: consumers buying high-involvement non-frequently purchased hedonic products are less loss averse when using an intermediary than when dealing with each provider separately and booking their services independently. This result can be taken as identifying consumer-based added value provided by the intermediaries. Practical implications Knowing the effect of an increase in their prices is crucial for tourism collective brands (e.g. sun and sea, inland, green destinations, World Heritage destinations). This is especially applicable nowadays on account of the fact that many destinations have lowered prices to attract tourists (although, in the future, they will have to put prices back up to their normal levels). The negative effect of raising prices can be absorbed more easily via indirect channels when compared to individual providers, as the influence of loss aversion is lower for the former than the latter. The key implication is that intermediaries can and should add value in competition with direct e-tailing. Originality/value Research on loss aversion in retailing has been prolific, exclusively focused on low-involvement and frequently purchased products without distinguishing the direct or indirect character of the distribution channel. However, less is known about other types of products such as high-involvement non-frequently purchased hedonic products. This article focuses on the latter and analyzes different patterns of loss aversion in direct and indirect channels.
