Power and loss aversion

Inesi, M (2010) Power and loss aversion. Organizational Behavior and Human Decision Processes, 112 (1). pp. 58-69. ISSN 0749-5978

Abstract

Four experiments tested the prediction that power reduces loss aversion by increasing the anticipated value of gains and shrinking the negative anticipated value of losses. Experiment 1 provided initial support for the prediction that those in power are less loss averse by replicating a classic paradigm of loss aversion in riskless choice and demonstrating moderation by power. Experiments 2 and 3 expanded on this finding by breaking apart the components of loss aversion to determine how power may reduce it: via gains, losses, or both. Across two scenarios and two different measures of anticipated value, power reduced the anticipated threat associated with a loss. However, the prediction that power increases the anticipated value of gains was not supported. Finally, Experiment 4 replicated the results of Experiments 2 and 3 in the context of a choice with real consequences for the participants. Implications of these findings are discussed.

More Details

Item Type: Article
Subject Areas: Organisational Behaviour
Date Deposited: 17 May 2016 12:24
Last Modified: 21 Jan 2025 02:38
URI: https://lbsresearch.london.edu/id/eprint/439
More

Export and Share


Download

Full text not available from this repository.

Statistics

Altmetrics
View details on Dimensions' website
Cited 0 times in

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item