The Impact of Culture on Loss Aversion

By Mei Wang, Marc Oliver Rieger, Thorsten Hens. 2017

134 citations recorded by the source corpus.

Based on the literature on the relationship between culture, emotion, and loss aversion, we derive that culture can influence the degree of loss aversion. To test our hypotheses, we conduct a standardized survey in 53 countries worldwide that includes the questions from the Hofstede survey on cultural dimensions as well as lottery questions on loss aversion. The results show that individualism, power distance, and masculinity increase loss aversion as predicted, whereas the impact of uncertainty avoidance is less significant. Moreover, we also find a relation between the distribution of major religions in a country and loss aversion. In comparison, the connection of loss aversion to macroeconomic variables seems to be much smaller.

Subfields: Demography, Safety Research, Social Psychology, Cognitive Science & Psychology, Economics & Operations Research

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Safety Research

1. Gavin Abercrombie
2. Dirk Hovy
3. Emily Dinan
4. Y-Lan Boureau

In Social Psychology

1. Verena Rieser
2. Gavin Abercrombie
3. Dirk Hovy
4. Emily Dinan
5. Y-Lan Boureau

In Cognitive Science & Psychology

1. Verena Rieser
2. Y-Lan Boureau

Citations in the corpus

• Anticipating Safety Issues in E2E Conversational AI: Framework and Tooling (2021, background): “It is stronger in women (Schmidt & Traub, 2002), and in-fluenced by culture (Wang et al., 2017).”