Moderators of Loss-Chasing: How Skewness, Information, and Framing Shape the Dynamics of Risk-Taking

We identify four factors that moderate dynamic risk-taking. People take on more risk following losses in positively skewed environments (low probabilities of large gains, high probabilities of small losses) and when they know the number of investment periods. Reframing losses as non-gains and risky options as defaults increases overall risk-taking.



Citation:

Jinwoo Kim, Alex Imas, and Christopher Olivola (2019) ,"Moderators of Loss-Chasing: How Skewness, Information, and Framing Shape the Dynamics of Risk-Taking", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 164-168.

Authors

Jinwoo Kim, Carnegie Mellon University, USA
Alex Imas, Carnegie Mellon University, USA
Christopher Olivola, Carnegie Mellon University, USA



Volume

NA - Advances in Consumer Research Volume 47 | 2019



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