Loss Aversion Essay Example | Topics and Well Written Essays - 1000 words

Loss Aversion - Essay Example In this particular source, the author discusses the issue of cost aversion from a phenomenal perspective. This is because the writer treats the topical issue of finance and cost aversion from a rational perspective where he makes use of radical human experiences to understand the basic principles of finance rather than using complex financial terminologies. Due to this reason, the writer introduces a theme, which is refers to as mental accounting. By mental accounting, each member of the wider population is assumed to be a financial expert because in one way or the other, the person uses his or her mental faculties to undertake and comprehend basic marketing and financial principles. The focus of the work of the writer can therefore be said to be looking at marketing and finance from a behavioral approach rather than a technical approach. From a personal analytical view, it would be said that the content of the writer’s work may concern some justifiable points but not much work was done by the writer to prove the authentication of the facts presented. For instance there was not the use of any financial models. The source would however be strongly criticized on the lack of empirical financial models being used in the data collection process. Though a finance and marketing paper, the writes are seen as writing from a more behavioral perspective. This dismisses the use of any well defined quantitative arguments that could offer a generalized persuasion of the arguments put forth. Camerer, Colin. Three Cheers--Psychological, Theoretical, Empirical--For Loss Aversion. Journal of Marketing Research, Vol. 42, No. 2 (May, 2005), pp. 129-133. Available at http://www.jstor.org/stable/30164010 Camerer (2005) is credited as a multi-disciplinary scholar whose research cuts across several fields and acreas of study. His major area however happens to be in finance. The source put forth by Camerer (2005) is