Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

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(1) the main text without the title of the article and the authors (DOC/DOCX file) and

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Number of Results 4

WP(36/2016)227. Gain and loss of money in a choice experiment. The impact of financial loss aversion and risk preferences on willingness to pay to avoid renewable energy extarnalities.

Authors: Bartczak Anna, Chilton Susan, Czajkowski Mikołaj, Meyerhoff Jürgen
We examine how the direction of price changes affects the value people place on avoiding renewable energy externalities in Poland. Additionally, we investigate the influence of individuals' financial loss aversion and financial risk preferences o…

WP227. Gain and loss of money in a choice experiment. The impact of financial loss aversion and risk preferences on willingness to pay to avoid renewable energy extarnalities.

We examine how the direction of price changes affects the value people place on avoiding renewable energy externalities in Poland. Additionally, we investigate the influence of individuals' financial loss aversion and financial risk preferences on this valuation. In our study we conduct a choice experiment survey in which respondents' choices indicate the value they place on avoiding wind, solar, and biomass externalities. We combine this survey with a financial lottery choice task that elicits the respondents' risk preferences and degree of loss aversion. In the choice experiment we use both increases and decreases in electricity bills to depict the uncertain effect of new sources of energy generation on the current price level. This design allows us to investigate if obtained values are independent of the payment mechanism. In the analyzed context, our results indicate that marginal utility of money seems to be lower with a rebate on the energy bill than with a surcharge. Moreover, financial risk preferences affect people's choices in a case of a surcharge, while loss aversion for money affects them in the case of a rebate. We find that the more loss averse people are with regard to money, the more they require compensation before they accept externalities from renewable electricity production. In contrast, the more risk seeking people are in a financial domain, the less cost sensitive they are and the more willing they are to pay for proposed changes in renewable electricity generation.


Bartczak Anna, Chilton Susan, Czajkowski Mikołaj, Meyerhoff Jürgen
choice experiment externalities of renewable energy loss aversion lottery experiment marginal utility of money risk preferences

WP(8/2014)125. Wildfires in Poland: the impact of risk preferences and loss aversion on environmental choices

Authors: Bartczak Anna, Chilton Susan, Meyerhoff Jürgen
 This paper examines how risk preferences and loss aversion affect choices over a risky environmental good, wildfire prevention in Poland. We collect data in a stated preference survey that allows us to calculate both risk aversion and loss aver…

WP125. Wildfires in Poland: the impact of risk preferences and loss aversion on environmental choices

 This paper examines how risk preferences and loss aversion affect choices over a risky environmental good, wildfire prevention in Poland. We collect data in a stated preference survey that allows us to calculate both risk aversion and loss aversion parameters from individual respondents in both the financial and environmental domains. In doing so, we are able to confirm that this behaviour is consistent with prospect theory and holds for the majority of respondents. Additionally, we find little evidence of domain specificity of risk: responses to the financial risk questions were good predictors of responses to the environmental risk questions.


Bartczak Anna, Chilton Susan, Meyerhoff Jürgen
risk preferences over financial and environmental domains forest fires loss aversion probability weighting prospect theory

WP(14/2012)80. Valuing the chances of survival of two distinct Eurasian lynx populations in Poland. Do people want to keep doors open?

Authors: Bartczak Anna, Meyerhoff Jürgen
This survey deals with valuing the social benefits of increasing chances of survival of the two main Eurasian lynx populations in Poland: the Lowland population and the Carpathian one. The populations are exposed to different risks of extinction. Usi…

WP80. Valuing the chances of survival of two distinct Eurasian lynx populations in Poland. Do people want to keep doors open?

This survey deals with valuing the social benefits of increasing chances of survival of the two main Eurasian lynx populations in Poland: the Lowland population and the Carpathian one. The populations are exposed to different risks of extinction. Using a discrete choice experiment we examined the influence of the initial degree of endangerment of those lynx populations on respondents' funds allocation. The results show that instead of investing in the option with the expected higher outcome a main driver of individuals' decisions regarding the conservation of threatened species seems to be loss aversion. Thus, people seem to try to keep options (doors) open by investing more in the more vulnerable population. Moreover, employing a scale-extended latent class model allowed to detect segments among individuals showing different types of response behavior and therefore improved the accuracy of the willingness to pay estimates considerably compared to a conditional logit model.


Bartczak Anna, Meyerhoff Jürgen
discrete choice models loss aversion Lynx conservation scale-extended latent class model threatened species

WP(13/2011)53. To answer or not to answer? A field test of loss aversion

Authors: Krawczyk Michał
This study is a field experiment on loss aversion. The framing of scoring rules was differentiated in two exams at the University of Warsaw, with only half the students facing explicit penalty points in the case of giving an incorrect answer. Loss av…

WP53. To answer or not to answer? A field test of loss aversion

This study is a field experiment on loss aversion. The framing of scoring rules was differentiated in two exams at the University of Warsaw, with only half the students facing explicit penalty points in the case of giving an incorrect answer. Loss aversion predicts that less risk will be taken (less questions will be answered) when losses are possible but in fact, no treatment effect was observed.


Krawczyk Michał
loss aversion framing field experiments gender differences
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