Loss Aversion And A Kinked Demand Curve: Evidence From Contingent Behaviour Analysis Of Seafood Consumers
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Ashton Morgan Ph.D., Assistant Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: Several laboratory experiments and market-based research in the fields of
psychology, economics and marketing have provided increasing evidence
of individuals exhibiting loss aversion tendencies, with decision-making
based on a pre-existing reference point. This creates an S-shaped value
function and associated kink in the demand curve. This research provides
contingent behaviour analysis of 1790 seafood consumers across the
Mid-Atlantic region. A survey is specifically designed to elicit respondents’
change in consumption from their reference point when faced with price
variations in the seafood market. Results from a Tobit model with random
effects provide empirical support of consumers behaving in a manner
consistent with loss aversion theory, revealing a kinked demand curve for
seafood meals at the respondents’ reference point.
Loss Aversion And A Kinked Demand Curve: Evidence From Contingent Behaviour Analysis Of Seafood Consumers
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Created on 5/30/2012
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Additional Information
- Publication
- Morgan, O. A. (2008) “Loss Aversion And A Kinked Demand Curve: Evidence From Contingent Behavior Analysis Of Seafood Consumers.” Applied Economics Letters, 15(8): 625-628 (ISSN: 1350-4851). [DOI: 10.1080/13504850600721940] Version Of Record Available At www.tandfonline.com
- Language: English
- Date: 2008