• 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, Crossref
    • Article Processing Charge (APC): 500 USD
    • E-mail: joebm.editor@gmail.com
HOME > Archive > 2026 > Volume 14 Number 3 (2026) >
JOEBM 2026 Vol.14(3): 221-224
DOI: 10.18178/joebm.2026.14.3.943

Loss Aversion in Decision-Making: Evidence from Consumer, Employee, and Financial Contexts

Zihan Guo
Zihan Guo
Faculty of Social Science and Law, University of Bristol, Bristol, UK
Email: xo24933@bristol.ac.uk

Manuscript received June 2, 2026; accepted August 21, 2026; published September 9, 2026.

Abstract—Traditional economic theory assumes that individuals are fully rational when making decisions; however, empirical evidence suggests that human behavior is often influenced by systematic biases. Among these, loss aversion is one of the most important concepts in behavioral economics. This study focuses on loss aversion and examines its role across different decision-making contexts. Drawing on Prospect Theory, this paper adopts a literature review to analyze the definition and underlying mechanisms of loss aversion. It explores how this bias operates in three contexts: consumer behavior, employee decision-making, and financial decision-making. This study integrates major behavioral economics theories and existing empirical findings to summarize typical decision-making patterns. The findings suggest that loss aversion significantly influences behavior across these contexts, leading individuals to prioritize avoiding losses over acquiring gains. This often results in deviations from rational decision-making. Understanding this bias can help improve strategies in marketing, human resource management, and financial decision-making.
 
Keywords—loss aversion, prospect theory, decision-making, consumer behavior, financial decision-making

Cite: Zihan Guo, "Loss Aversion in Decision-Making: Evidence from Consumer, Employee, and Financial Contexts," Journal of Economics, Business and Management, vol. 14, no. 3, pp. 221-224, 2026.

Copyright © 2026 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).


PREVIOUS PAPER
Research on the Management Strategy and Competitive Advantage of Xiaomi Automobile
NEXT PAPER
A Case Study on the Optimization of Enterprise Project Management—Taking Huawei’s Projects as an Example
Copyright © 2013-2026. Journal of Economics, Business and Management. Unless otherwise stated.
E-mail: joebm.editor@gmail.com