The boots to them, them in the bar, them barmaids came


It is often claimed that negative events carry a larger weight than positive events. Loss aversion is the manifestation of this argument in monetary outcomes. In this review, we examine early studies of the utility function of gains and losses, and in particular the original evidence for loss aversion reported by Kahneman and Tversky (Econometrica  47:263–291, 1979). We suggest that loss aversion proponents have over-interpreted these findings.

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