Loss aversion and gain appetite in the small and in the large

In their pioneering works on prospect theory Kahneman and Tversky (1979, 1992) propose the ground-breaking idea that in making decisions under risk individuals evaluate asymmetrically losses and gains against to a personal reference point. According to the Kahneman and Tversky (1979) statement “losses loom larger than gains”, individuals display loss aversion. However, Sacchi and Stanca (2014) argue that people may exhibit gain appetite that...