Monday, February 4, 2019

Evidence of loss aversion in Golf

Loss aversion refers to irrational decisions that are made to avoid perceived losses, rather than maximize expected value (which weights losses and gains equally).  This paper finds "that golfers are more likely to protect par (the number of strokes that an average highly-skilled player should take to complete a hole) than they are to make birdies (a score of one less than par)."

Note that such loss aversion requires a "target" like par, around which losses and gains are measured.  When par changes on a hole, e.g., from 5 to 4,  professional golfers are likely to make sure they make par, rather than take a chance on making a birdie, even when doing so would be optimal from an expected value point of view.

Businesses react to consumer loss aversion, e.g., when companies frame variable pricing as a discount from a normally high price, rather than framing the exact same pricing as an increase from a normally low price.


  1. This comment has been removed by a blog administrator.

  2. Replies

  3. Very good write-up. I certainly love this website. Thanks!

    Halfords Give Us A Steer

  4. This comment has been removed by a blog administrator.

  5. I’am Mrs Christina, I and my husband are here to testify about how we use United ATM black card to make money and also have our own business today. Go get your blank ATM card today and be among the lucky ones. This PROGRAMMED blank ATM card is capable of hacking into any ATM machine, anywhere in the world. It has really changed our life for good and now we can say we are rich and we can never be poor again. You can withdraw the maximum of $ 10,000 daily We can proudly say our business is doing fine and we have up to 20,000 000 (20 millions dollars in our account) Is not illegal, there is no risk of being caught because it has been programmed in such a way that it is not traceable, it also has a technique that makes it impossible for the CCTV to detect you.. For details and cost on how to get yours today, email the hackers on: