Development of the loss aversion questionnaire

Little is known about individual differences in loss aversion. This is particularly surprising if one considers the strong emphasis on individual differences in both economics and psychology. A Loss Aversion Questionnaire is proposed as an instrument that is capable of measuring interindividual differences in loss aversion. Two studies (N1 = 187; N2 = 455) were conducted to validate the measure. Results support the view that loss aversion can be conceptualized as a measure of interindividual difference. Various groups (students, entrepreneurs, managers, and civil servants) were found to differ significantly in the degree to which they displayed loss aversion. Furthermore, we report on issues of differential validity with other well-known concepts such as risk aversion, impulsivity, and anxiety.