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Omission matters: Reframing omission as action reduces apparent loss aversion

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  • Nagaya, Kazuhisa
  • Ono, Fuminori
  • Nakayachi, Kazuya

Abstract

Loss aversion is considered a fundamental principle explaining risk-averse behavior in small-stakes gambling. However, this interpretation confounds loss aversion, with a preference for inaction over action. We examined whether ostensible loss aversion in gambling tasks reflects genuine aversion to losses or simply a preference for omission. Across three studies, 1,345 participants were presented with symmetric gambles under two conditions: an action/omission condition offering “bet” versus “not bet” choices and an action/action condition requiring a choice between two betting options, both stated as actions. The results consistently showed that participants in the action/action condition selected risky actions at higher rates than those in the action/omission condition. Thus, what has been attributed to apparent loss aversion in gambling contexts is fundamentally driven by preference for inaction.

Suggested Citation

  • Nagaya, Kazuhisa & Ono, Fuminori & Nakayachi, Kazuya, 2026. "Omission matters: Reframing omission as action reduces apparent loss aversion," Judgment and Decision Making, Cambridge University Press, vol. 21, pages 1-17, January.
    • Handle: RePEc:cup:judgdm:v:21:y:2026:i::p:-_17
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