Suppose you would have to pay Troy at least $12 to get him to part with his new water bottle. Loss aversion implies that if Troy had not yet purchased the water bottle, he would:
A)be willing to pay more than $12 to buy it.
B)be willing to pay exactly $12 to buy it.
C)be willing to pay less than $12 to buy it.
D)no longer be interested in buying 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 water bottle would be more painful than the pleasure associated with getting the water bottle, so he would be willing to pay less than $12 to buy it.

Suppose You Would Have to Pay Troy at Least $12