scholarly journals Decision-Making in Suicidal Behavior: The Protective Role of Loss Aversion

2018 ◽  
Vol 9 ◽  
Author(s):  
Gergö Hadlaczky ◽  
Sebastian Hökby ◽  
Anahit Mkrtchian ◽  
Danuta Wasserman ◽  
Judit Balazs ◽  
...  
Keyword(s):  
Decision Making ◽  
Suicidal Behavior ◽  
Loss Aversion ◽  
Protective Role

scholarly journals Factor Influencing Investor’s Decision Making in Indonesia: Moderating the Role of Locus of Control

2020 ◽  
pp. 49-56
Author(s):  
Febria Nalurita ◽  
Farah Margaretha Leon ◽  
Hamdy Hady
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Equation Modeling ◽  
Investment Decision Making ◽  
Market Factors ◽  
Regret Aversion

This study aims to investigate the effect of loss aversion, regret aversion, and market factors, on investment decision making with the moderating role of locus of control. Data collection is done by distributing questionnaires. The survey was conducted on individual investors in the Indonesia Stock Exchange in Jakarta to obtain a sample of 281. This research uses the Structural Equation Modeling approach. The statistical tool used is LISREL 8.8. This study found that loss aversion, regret aversion, and market factors significantly influence investment decision making. Locus of control plays the role of moderation between loss aversion, regret aversion, market factors, and investment decision making. The novelty in this study reveals the research that needs to be done to encourage investors to make rational decisions and control the required rate of returns through their locus of control. This research helps investors to make decisions logically and rationally with an open mind, high-performance thoughts and positive actions for investment goals that produce positive returns.

scholarly journals Back to the Shop Floor: Behavioural Insights from Workplace Sociology

2019 ◽  
Vol 33 (6) ◽  
pp. 1039-1057 ◽  
Author(s):  
Andrew Pendleton ◽  
Ben Lupton ◽  
Andrew Rowe ◽  
Richard Whittle
Keyword(s):  
Decision Making ◽  
20Th Century ◽  
Loss Aversion ◽  
Social Processes ◽  
Shop Floor ◽  
Behavioural Insights ◽  
Pay Incentives ◽  
Sociological Studies ◽  
Worker Behaviour

This article compares insights into decision-making and behaviour developed by Kahneman and Tversky in behavioural economics with the main findings from studies of pay incentives in workplace sociology in the middle decades of the 20th century. The article shows how many of the insights offered by behavioural economists, such as loss aversion, were anticipated and considered by the workplace sociologists. It is argued that the sociological studies offer deeper and more convincing accounts of worker behaviour through a better understanding of the role of social structure, context, and social processes in framing and influencing action.

Impact of socio-psychological factors on investment decisions: The mediating role of behavioral biases

2020 ◽  
Author(s):  
Sadia Jabeen ◽  
Syed Zulfiqar Ali Shah ◽  
Naheed Sultana ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Social Interaction ◽  
Loss Aversion ◽  
Investment Decision ◽  
Equation Modeling ◽  
Behavioral Biases ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Unlike previous studies that examine the effect of behavioral biases on investor decision-making, this study explores the root causes of behavioral biases and examines the mediating role of behavioral biases in the relationship between different types of emotions and investment decision-making. The cognitive theory of depression, attentional control theory, and prospect theory together provide the foundation and anticipate that stress, depression, anxiety, and social interaction are the major sources of cognitive mistakes that,in turn, affect investment decision-making. Model testing relies upon the data collected from 252stock investors trading in different stock exchanges of Pakistan; in order to test the hypothesized relationship, structural equation modeling has been used. Depression is a major source of loss aversion bias. Anxiety is a strong source of herding. Stress is a major source of representative bias.Social interaction is a root cause of overconfidence. Loss aversion bias, herding, and overconfidence fully mediate the relationship between depression, anxiety, social interaction, and investor decision; however, anxiety has the strongest impact on investor decision via herding bias, while stress has both insignificant direct and indirect effect on investment decision-making. Keywords: Sources of biases, self-efficacy, behavioral pattern, investment decision.

scholarly journals Three Cheers—Psychological, Theoretical, Empirical—for Loss Aversion

2005 ◽  
Vol 42 (2) ◽  
pp. 129-133 ◽  
Author(s):  
Colin Camerer
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Loss Aversion ◽  
Special Role ◽  
Open Questions ◽  
Increased Sensitivity ◽  
Psychological Foundation ◽  
Petersburg Paradox ◽  
Stable Feature

This note emphasizes the special role of prospect theory in drawing psychophysical considerations into theories of decision making with respect to risk. An example of such a consideration is the dependence of outcome value on a reference point and the increased sensitivity of loss relative to gain (i.e., loss aversion). Loss aversion can explain the St. Petersburg paradox without requiring concave utility, it has the correct psychological foundation, it is theoretically useful, and it is a parsimonious principle that can explain many puzzles. A few open questions are whether loss aversion is a stable feature of preference, whether it is an expression of fear, and what are its properties.

The reference effect in newsvendor model with strategic customers

2017 ◽  
Vol 55 (5) ◽  
pp. 1006-1021 ◽  
Author(s):  
Jiaming Liu ◽  
Chong Wu ◽  
Tianyi Su
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Optimal Pricing ◽  
Newsvendor Model ◽  
Pricing Policy ◽  
Content Type ◽  
Strategic Customers ◽  
Decision Making Behavior ◽  
Ordering Quantity

Purpose The purpose of this paper is to discuss the role of reference effect on newsvendor’s decision behavior in a market with strategic customers and work out the newsvendor’s optimal pricing policy and ordering quantity. Design/methodology/approach This study utilizes the prospect theory and strategic customer framework to analyze the decision-making behavior on the newsvendor’s optimal pricing policy and ordering quantity. The paper further presents an extension of newsvendor model and provides the model’s properties. The paper finally analyzes the results with various parameters on the model and reports on the insights generated by the model. Findings The paper indicates that the ordering quantity is not altered with the changing proportion of strategic customers and myopic customers, but the ordering quantity and the pricing strategy are influenced in terms of newsvendor’s reference effect, loss aversion, product cost, and salvage price. Practical implications The research findings have important implications for decision makers. Previous researches have studied the incomplete rationality newsvendor’s decision-making behavior mainly by analyzing the vendor’s risk preferences or loss aversion, but the effect of reference point also plays an important role in analyzing the decision-maker’s behavior. The paper provides the optimal pricing policy and ordering quantity with the reference effect considering the strategic customers behavior. This model is also a valid complementarity to behavioral operations management research area. Originality/value The paper examines the role of reference effect in newsvendor problem with the strategic customers and analyzes the impact of parameters such as loss aversion on the newsvendor’s decision behavior.

scholarly journals On the role of impulsivity and decision-making in suicidal behavior

2015 ◽  
Vol 5 (3) ◽  
pp. 255 ◽  
Author(s):  
Yari Gvion ◽  
Yossi Levi-Belz ◽  
Gergö Hadlaczky ◽  
Alan Apter
Keyword(s):  
Decision Making ◽  
Suicidal Behavior

Evaluating the Role of Three Basic Factors of Prospect Theory in Decision Making

2017 ◽  
Vol 6 (2) ◽  
pp. 1-22
Author(s):  
Evanthia K. Zervoudi
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Loss Aversion ◽  
Functional Form ◽  
Empirical Evaluation ◽  
Value Functions ◽  
Optimal Solutions ◽  
Negative Exponential Function ◽  
Value Functional

The main aim of this paper is to empirically evaluate the role of three significant factors of the Prospect Theory: the S-shaped value function, the loss aversion, and the distortion of probability, in decision making. In order to do this, a general behavioral reward-risk model is firstly setup and an empirical evaluation about the role of each of these factor, separately and in interaction, on the optimal solutions of the problem follows. For the analysis, well known US equity portfolios consisting by stocks listed in NYSE, AMEX, and NASDAQ formed on investment style are employed. The findings indicate that agents differentiate their behavior according to their type of preferences and their loss aversion level but they seem to always prefer high positively skewed assets such as small and value stocks. The attractiveness of positively skewed assets is re-enforced when probability distortion is introduced in the model. The introduction of probability distortion also affects the optimal perspective values of the problem increasing significantly their magnitude. After that, results show that as loss aversion increases agents tend to follow more conservative strategies, with and without probability distortion, while the value functional form has also its role in the model; bounded value functions as the negative exponential function drives agents to more conservative behaviors while unbounded value functions as the piecewise power function give the incentive to agents to undertake great risks and follow more aggressive strategies. The examination of the interaction of these factors indicate that the combination of an unbounded value functional form with a large loss aversion index may reduce agents' aggressiveness and limit (but not alter) the value functional form effect on optimal solutions.

scholarly journals The Protective Role of Religious Coping in Adolescents’ Responses to Poverty and Sexual Decision-Making in Rural Kenya

2011 ◽  
Vol 22 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Eve S. Puffer ◽  
Melissa H. Watt ◽  
Kathleen J. Sikkema ◽  
Rose A. Ogwang-Odhiambo ◽  
Sherryl A. Broverman
Keyword(s):  
Decision Making ◽  
Religious Coping ◽  
Protective Role ◽  
Sexual Decision Making ◽  
Rural Kenya

Evaluating the Role of Three Basic Factors of Prospect Theory in Decision Making

2020 ◽  
pp. 585-604
Author(s):  
Evanthia K. Zervoudi
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Loss Aversion ◽  
Functional Form ◽  
Empirical Evaluation ◽  
Value Functions ◽  
Optimal Solutions ◽  
Value Stocks ◽  
Value Functional

The main aim of this paper is to empirically evaluate the role of three significant factors of the Prospect Theory: the S-shaped value function, the loss aversion, and the distortion of probability, in decision making. In order to do this, a general behavioral reward-risk model is firstly setup and an empirical evaluation about the role of each of these factor, separately and in interaction, on the optimal solutions of the problem follows. For the analysis, well known US equity portfolios consisting by stocks listed in NYSE, AMEX, and NASDAQ formed on investment style are employed. The findings indicate that agents differentiate their behavior according to their type of preferences and their loss aversion level but they seem to always prefer high positively skewed assets such as small and value stocks. The attractiveness of positively skewed assets is re-enforced when probability distortion is introduced in the model. The introduction of probability distortion also affects the optimal perspective values of the problem increasing significantly their magnitude. After that, results show that as loss aversion increases agents tend to follow more conservative strategies, with and without probability distortion, while the value functional form has also its role in the model; bounded value functions as the negative exponential function drives agents to more conservative behaviors while unbounded value functions as the piecewise power function give the incentive to agents to undertake great risks and follow more aggressive strategies. The examination of the interaction of these factors indicate that the combination of an unbounded value functional form with a large loss aversion index may reduce agents' aggressiveness and limit (but not alter) the value functional form effect on optimal solutions.

Cyberbullying and Victimization and Youth Suicide Risk: The Buffering Effects of School Connectedness

2019 ◽  
Vol 36 (4) ◽  
pp. 251-257 ◽  
Author(s):  
JaHun Kim ◽  
Elaine Walsh ◽  
Kenneth Pike ◽  
Elaine A. Thompson
Keyword(s):  
Risk Behavior ◽  
Suicidal Behavior ◽  
Suicide Risk ◽  
School Connectedness ◽  
Protective Role ◽  
Hierarchical Logistic Regression ◽  
School Based ◽  
Increased Risk ◽  
The Relationship

Bullying has been linked to adolescent suicidal behavior. With dramatic increases in social media use among youth, understanding the influence of cyberbullying on adolescent suicidal behavior has become central to prevention efforts. This study examined the potential protective role of school connectedness in the relationship between cyberbullying and suicide risk behavior. Data were from 93 adolescents participating in a longitudinal study of an intervention to prevent health-risk behavior including suicidal behavior. Hierarchical logistic regression was used to examine the influence of cyberbullying and school connectedness on adolescent suicidal behavior. Findings indicated that being a victim of cyberbullying, but not a perpetrator, was associated with increased risk of suicide and that connections to school moderated this relationship in that, among youth who were victims of cyberbullying, those more connected to school were less likely to report suicidal behavior. Implications for school-based suicide prevention and school nurse practice are discussed.

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