Organizational incentives magnify the effects of loss aversion on the career-motivated self-censorship of "risky" proposals.

Question

Quizplus · Accepted Answer

Organizational incentives such as promotions, bonuses, and awards can increase individuals' focus on avoiding losses and potential negative consequences, thus magnifying the effects of loss aversion. This can lead to individuals self-censoring "risky" proposals, especially if they believe their career advancement or standing in the organization may be at risk.

Organizational Incentives Magnify the Effects of Loss Aversion on the Career-Motivated