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Appears in Collections:Management, Work and Organisation Journal Articles
Peer Review Status: Refereed
Title: Individual Differences in Loss Aversion: Conscientiousness Predicts How Life Satisfaction Responds to Losses Versus Gains in Income
Author(s): Boyce, Christopher J
Wood, Alex M
Ferguson, Eamonn
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Keywords: income
loss aversion
life satisfaction
subjective well-being
Issue Date: Apr-2016
Date Deposited: 29-Jul-2016
Citation: Boyce CJ, Wood AM & Ferguson E (2016) Individual Differences in Loss Aversion: Conscientiousness Predicts How Life Satisfaction Responds to Losses Versus Gains in Income. Personality and Social Psychology Bulletin, 42 (4), pp. 471-484.
Abstract: Loss aversion is considered a general pervasive bias occurring regardless of the context or the person making the decision. We hypothesized that conscientiousness would predict an aversion to losses in the financial domain. We index loss aversion by the relative impact of income losses and gains on life satisfaction. In a representative German sample (N = 105,558; replicated in a British sample, N = 33,848), with conscientiousness measured at baseline, those high on conscientiousness have the strongest reactions to income losses, suggesting a pronounced loss aversion effect, whereas for those moderately unconscientious, there is no loss aversion effect. Our research (a) provides the first evidence of personality moderation of any loss aversion phenomena, (b) supports contextual perspectives that both personality and situational factors need to be examined in combination, (c) shows that the small but robust relationship between income and life satisfaction is driven primarily by a subset of people experiencing highly impactful losses.
DOI Link: 10.1177/0146167216634060
Rights: This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study. The final, definitive version of this article has been published in Personality and Social Psychology Bulletin, 42 (4), pp. 471-484 by SAGE Publications. Copyright 2016 Sage Publications.

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