Suppose you would have to pay Alicia at least $150 to get her to part with a ticket she just bought to see her favorite band play next Friday. Loss aversion implies that if Alicia had not yet bought the ticket, she would:
A)be willing to pay more than $150 for it.
B)be willing to pay less than $150 for it.
C)be willing to pay exactly $150 for it.
D)no longer be interested in purchasing it.

Question

Quizplus · Accepted Answer

Loss aversion is the tendency to experience losses as more painful than the pleasures that result from gains of the same magnitude. In this case, losing the ticket would be more painful than the pleasure associated with getting the ticket, so she would be willing to pay less than $150 to buy it.

Suppose You Would Have to Pay Alicia at Least $150