Loss Aversion Underlying Violation

Atsuo Murata
2015 Journal of Psychology Research  
In order to get insight into the prevention of violation-based human errors or accidents, loss aversion was discussed in detail. We paid attention to the way of earning money, and two ways of earning money were assumed in the experiment. The two ways of earning money included: (1) earn by oneself, (2) happen to get money by a lottery or in a prize. For these two cases, an attempt was made to evaluate the feelings of gain and loss using ME (magnitude estimation) method. On the basis of such an
more » ... periment, it was discussed how the extent of loss aversion differed according to the amount of value added to money (gain or loss). It was experimentally verified that we dislike losses more than we like commensurate gains. In other words, our feeling (regret) or attitude to the loss of some money ($X) was larger than our feeling (pleasure) to the same gain of money ($X). Moreover, such a difference was found to differ between situations under which gain or loss was induced. The difference of feeling between loss and gain was larger when the money was earned by oneself than when the money was earned by coincidence. When the money was incidentally got by a lottery or in a prize, the difference of feeling (value) between gain and loss was not so large as pointed out in prospect theory.
doi:10.17265/2159-5542/2015.04.001 fatcat:mdezkqqlrzalbecfwfaeckxqcy