Psychological Tangibility of Money Influences Loss Aversion and Propensity For Gambling

Avni Shah, Duke University, USA
Jim Bettman, Duke University, USA
John Payne, Duke University, USA
In this paper we show that reducing the subjective value of money decreases sensitivity to losses. We find that using less tangible forms of money increases the amount of money gambled, the propensity of selecting riskier gambles, and leads individuals to underestimate the amount gambled and overestimate their earnings.
[ to cite ]:
Avni Shah, Jim Bettman, and John Payne (2014) ,"Psychological Tangibility of Money Influences Loss Aversion and Propensity For Gambling", in NA - Advances in Consumer Research Volume 42, eds. June Cotte and Stacy Wood, Duluth, MN : Association for Consumer Research, Pages: 184-188.