Testing reference dependence, loss aversion and diminishing sensitivity in Spanish tourism

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dc.contributor.authorNicolau, Juan Luisen
dc.date.accessioned2024-08-06T17:41:35Zen
dc.date.available2024-08-06T17:41:35Zen
dc.date.issued2008-05-01en
dc.description.abstractBased on Tversky and Kahneman's Prospect Theory, we test the existence of reference dependence, loss aversion and diminishing sensitivity in Spanish tourism. To do this, we incorporate the reference-dependent model into a Multinomial Logit Model with Random Parameters -which controls for heterogeneity- and apply it to a sample of vacation choices made by Spaniards. We find that the difference between reference price and actual price is considered to make decisions, confirming that reference dependence exists; that people react more strongly to price increases than to price decreases relative to their reference price, which represents evidence in favor of the loss aversion phenomenon; and that there is diminishing sensitivity for losses only, showing convexity for these negative values.en
dc.description.versionPublished versionen
dc.format.extentPages 231-255en
dc.format.extent25 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifier.eissn1575-4367en
dc.identifier.issn0210-1521en
dc.identifier.issue2en
dc.identifier.orcidNicolau Gonzalbez, Juan [0000-0003-0048-2823]en
dc.identifier.urihttps://hdl.handle.net/10919/120862en
dc.identifier.volume32en
dc.language.isoenen
dc.publisherFundaciĆ³n SEPIen
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000255729900004&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsCreative Commons Attribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectprospect theoryen
dc.subjecttourismen
dc.subjectpricesen
dc.titleTesting reference dependence, loss aversion and diminishing sensitivity in Spanish tourismen
dc.title.serialInvestigaciones EconĆ³micasen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dc.type.otherJournalen
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Hospitality and Tourism Managementen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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