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Gender effects for loss aversion: Yes, no, maybe?

Author

Listed:
  • Ranoua Bouchouicha

    () (University of Reading)

  • Lachlan Deer

    () (University of Zurich)

  • Ashraf Galal Eid

    () (Qatar University)

  • Peter McGee

    () (University of Arkansas)

  • Daniel Schoch

    () (University of Nottingham Malaysia Campus)

  • Hrvoje Stojic

    () (Universitat Pompeu Fabra)

  • Jolanda Ygosse-Battisti

    () (São Paolo School of Business)

  • Ferdinand M. Vieider

    () (Ghent University)

Abstract

Gender effects in risk taking have attracted much attention by economists, and remain debated. Loss aversion—the stylized finding that a given loss carries substantially greater weight than a monetarily equivalent gain—is a fundamental driver of risk aversion. We deploy four definitions of loss aversion commonly used in the literature to investigate gender effects. Even though the definitions only differ in subtle ways, we find women to be more loss averse than men according to one definition, while another definition results in no gender differences, and the remaining two definitions point to women being less loss averse than men. Conceptually, these contradictory effects can be organized by systematic measurement error resulting from model mis-specifications relative to the true underlying decision process.

Suggested Citation

  • Ranoua Bouchouicha & Lachlan Deer & Ashraf Galal Eid & Peter McGee & Daniel Schoch & Hrvoje Stojic & Jolanda Ygosse-Battisti & Ferdinand M. Vieider, 2019. "Gender effects for loss aversion: Yes, no, maybe?," Journal of Risk and Uncertainty, Springer, vol. 59(2), pages 171-184, October.
  • Handle: RePEc:kap:jrisku:v:59:y:2019:i:2:d:10.1007_s11166-019-09315-3
    DOI: 10.1007/s11166-019-09315-3
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    References listed on IDEAS

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    Cited by:

    1. François Cochard & Alexandre Flage & Gilles Grolleau & Angela Sutan, 0. "Are individuals more generous in loss contexts?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 0, pages 1-22.

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