英语翻译A second prediction of prospect theory,known as “loss av

英语翻译
A second prediction of prospect theory,known as “loss aversion”,is that individuals will exhibit a stronger preference for avoiding something they perceive to be a“loss”than for achieving something that appears to be a”gain” of the equivalent magnitude.A consequence of loss aversion is that individuals will usually prefer to keep an item they possess (and thus avoid a “loss”) rather than trade that item for one of objectively identical value(and thus achieve a gain).This consequence,known as the “status quo bias”or the “endowment effect”,suggests that,hold constant differences in preferences between two negotiators,the negotiator who possesses property or a legal entitlement (the seller) is likely to have higher reservation price than a negotiator who does not possess the propery or entitlement(the buyer).Put another way ,all other things being equal,an indiviual is likely to exhibit a higher reservation price for an item if owns it than if she dose not own it.As the experiments described in the following article demonstrate.the result of this phenomeno is smaller bargaining zones and fewer successful transactions than rational economics would predict.