Examination of Loss Aversion and Its Role in Willingness to Pay for Leisure Services Using the Contingent Valuation Method

초록

Loss aversion infers that individuals react more sensitively to losses than to corresponding gains, tending to avoid losses rather than to acquire gains. Research confirms the occurrence of loss aversion in several social science fields; however, few studies have examined loss aversion within a leisure context. The purpose of this article is to examine the occurrence of loss aversion in a leisure context by estimating and comparing hikers' willingness to pay (WTP) under loss and gain scenarios. To estimate hikers' WTP, this study employs the adjusted Contingent Valuation Method (CVM) because traditional CVM has been critiqued due to response bias. The study results confirm that hikers' WTP for avoiding potential losses of hiking trails is higher than WTP for potential gains. From a management perspective, these results imply that the loss-based strategy may be helpful when considering ways to generate revenue.

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