• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
JOEBM 2023 Vol.11(2): 57-62
DOI: 10.18178/joebm.2023.11.2.738

Trusting Behavior, Risk Preference and Loss Aversion

Abstract—This paper uses experimental methods to study if individual’s risk preference or loss aversion will affect people’s trusting behavior. The results of the experiment show that individuals’ risk preference significantly impacts people’s trusting behavior. Compared with other subjects, people who are relatively less risk-averse show a higher degree of trust in others. Moreover, individuals’ loss aversion also affects people’s trusting behavior, subjects with relatively lower levels of loss aversion exhibit a higher degree of trust in others.

Index Terms—Decision making, loss aversion, risk preference, trusting behavior

Jiatong Xue is with University of Nottingham, UK. E-mail: jiatongxue0823@163.com


Cite:Jiatong Xue, "Trusting Behavior, Risk Preference and Loss Aversion," Journal of Economics, Business and Management vol. 11, no. 2, pp. 57-62, 2023.

Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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