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Josh Matti

reveal important characteristics of consumer behavior. Two central theories of consumer behavior are loss aversion and reference dependence ( Kahneman & Tversky, 1979 ). With loss aversion, the pain of losses feels greater than the joy of gains. With reference dependence, the domain of gains and losses

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Dennis Riedl, Andreas Heuer, and Bernd Strauss

Incentives guide human behavior by altering the level of external motivation. We apply the idea of loss aversion from prospect theory (Kahneman & Tversky, 1979) to the point reward systems in soccer and investigate the controversial impact of the three-point rule on reducing the fraction of draws in this sport. Making use of the Poisson nature of goal scoring, we compared empirical results with theoretically deduced draw ratios from 24 countries encompassing 20 seasons each (N = 118.148 matches). The rule change yielded a slight reduction in the ratio of draws, but despite adverse incentives, still 18% more matches ended drawn than expected, t(23) = 11.04, p < .001, d = 2.25, consistent with prospect theory assertions. Alternative point systems that manipulated incentives for losses yielded reductions at or below statistical expectation. This provides support for the deduced concept of how arbitrary aims, such as the reduction of draws in the world’s soccer leagues, could be more effectively accomplished than currently attempted.

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Stephanie G. Kerrigan, Evan M. Forman, Mitesh Patel, Dave Williams, Fengqing Zhang, Ross D. Crosby, and Meghan L. Butryn

disseminability of these interventions, improvements in the efficacy of incentive programs are critical. Theories within the umbrella of behavioral economics can point toward specific treatment components that warrant investigation, such as loss aversion (or the idea that individuals are more motivated to avoid

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Nicholas M. Watanabe, Stephen Shapiro, and Joris Drayer

outcomes on perceptions of local businesses. This study extended knowledge on loss-aversion and reference-dependent preferences through an investigation of close to one million Yelp reviews. Consistent with loss aversion, Matti found that unexpected losses led to more negative business reviews. As online

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John Charles Bradbury

- and away-team quality (as measured by Elo ratings) to be positively associated with attendance and fan behavior to be more consistent with the reference-dependent and loss-aversion hypothesis than UOH. Similarly, Sung, Mills, and Mondello ( 2019 ) found that local television viewership of MLS matches

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Steven Salaga, Scott Tainsky, and Michael Mondello

. Journal of Sports Economics, 17 ( 8 ), 790 – 812 . doi:10.1177/1527002514551002 10.1177/1527002514551002 Coates , D. , Humphreys , B.R. , & Zhou , L. ( 2014 ). Reference-dependent preferences, loss aversion, and live game attendance . Economic Inquiry, 52 ( 3 ), 959 – 973 . doi:10.1111/ecin

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Nicholas M. Watanabe, Grace Yan, Brian P. Soebbing, and Wantong Fu

. , & Humphreys , B.R. ( 2007 ). Ticket prices, concessions and attendance at professional sporting events . International Journal of Sport Finance, 2 , 161 – 170 . Coates , D. , Humphreys , B.R. , & Zhou , L. ( 2014 ). Reference-dependent preferences, loss aversion, and live game attendance

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Brian M. Mills

. , & Humphreys , B.R. ( 2008 ). Do economists reach a conclusion on subsidies for sports franchises, stadiums, and mega-events? Econ Journal Watch, 5 ( 3 ), 294 – 315 . Coates , D. , Humphreys , B.R. , & Zhou , L. ( 2014 ). Reference-dependent preferences, loss aversion, and live game attendance

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Hojun Sung, Brian M. Mills, and Michael Mondello

week attendance and competitive balance in the National Football League . International Journal of Sport Finance, 5 ( 4 ), 239 . Coates , D. , Humphreys , B.R. , & Zhou , L. ( 2014 ). Reference-dependent preferences, loss aversion, and live game attendance . Economic Inquiry, 52 ( 3

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Adam Karg, Jeremy Nguyen, and Heath McDonald

, B. ( 2012 ). Game attendance and outcome uncertainty in the National Hockey League . Journal of Sports Economics, 13 ( 4 ), 364 – 377 . doi:10.1177/1527002512450260 10.1177/1527002512450260 Coates , D. , Humphreys , B. , & Zhou , L. ( 2014 ). Reference‐dependent preferences, loss