When Losses Loom Even Larger: the Moderating Role of Relationship Norms

Title:                            When Losses Loom Even Larger: The Moderating Role of Relationship Norms

Authors’ names:          Pankaj Aggarwal, University of Toronto

Meng Zhang, University of Toronto

Abstract:                     People are loss averse when their pain of losing something exceeds their joy of gaining it. This research proposes a moderator of loss aversion: the type of relationship norms salient at the time the loss or gain is experienced. We suggest that norms of communal relationship (based on concern for the partner) relative to an exchange relationship (based on quid pro quo) lead to greater loss aversion. Across three studies, relationship norms were both measured and manipulated. Support for the thesis is provided by assessing the degree of loss aversion using the typical endowment effect and gambling tasks. 

Citation:

Pankaj Aggarwal and Meng Zhang (2006) ,"When Losses Loom Even Larger: the Moderating Role of Relationship Norms", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 115-116.