How Do Intentions Affect Loss Aversion?
Published 5/1/2005
Author: Nathan Novemsky and Daniel Kahneman
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Executive Summary
In Novemsky and Kahneman’s (2005) previous article, they propose that intentions to exchange versus consume a good moderate loss aversion for that good. In this rejoinder, the authors follow up on this idea, discussing several mechanisms that Ariely, Huber, and Wertenbroch (2005) propose by which intentions can moderate loss aversion. The authors consider both emotional attachment to the good and cognitive focus during evaluation as potential mediators of the effects of intentions on loss aversion.
Biography
Nathan Novemsky is Assistant Professor of Marketing in the School of Management at Yale University. He earned his doctoral degree in Psychology from Princeton University. His research focuses on how consumers evaluate and use different types of information in situations in which multiple pieces of information are available. He has investigated the types of information that consumers find easy to evaluate and judge (e.g., satisfaction derived from a negotiated outcome). He has also examined the information that consumers use to form an aggregate judgment of the enjoyment of an experience, finding that beliefs about the enjoyment can differ from the actual experienced enjoyment. His recent research has investigated how events leading to a choice affect choices within a sequence of experiences.
Daniel Kahneman is Eugene Higgins Professor of Psychology in the Psychology Department, Woodrow Wilson School, at Princeton University. He has been Professor of Psychology at the University of California, Berkeley; Fellow at the Canadian Institute for Advanced Research; Professor of Psychology at the University of British Columbia; Fellow at the Center for Advanced Study in the Behavioral Sciences; and Professor at the Hebrew University in Jerusalem. Daniel Kahneman is a member of the American Academy of Arts and Sciences and the National Academy of Sciences. He is Fellow of the American Psychological Association, the American Psychological Society, the Society of Experimental Psychologists, and the Econometric Society. He has been the recipient of many awards, such as the Distinguished Scientific Contribution Award of the American Psychological Association, the Warren Medal of the Society of Experimental Psychologists, the Hilgard Award for Career Contributions to General Psychology, and Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.
J Marketing Research, Volume 42, Number 2, May 2005
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