The median lambda was 2.25, indicating pronounced loss aversion
Amos Tversky and Daniel Kahneman present cumulative prospect theory, a revision of prospect theory that applies cumulative rather than separable decision weights. It covers uncertain as well as risky prospects with any number of outcomes, and it uses different weighting functions for gains and for losses. The authors use diminishing sensitivity and loss aversion to explain the shape of the value and weighting functions. A review of experimental evidence and a new experiment are reported as supporting a fourfold pattern of risk attitudes: risk aversion for high-probability gains and risk seeking for high-probability losses, with the reverse for low-probability gains and losses.
Amos Tversky and Daniel Kahneman present cumulative prospect theory, a revision of prospect theory that applies cumulative rather than separable decision weights. It covers uncertain as well as risky prospects with any number of outcomes, and it uses different weighting functions for gains and for losses. The authors use diminishing sensitivity and loss aversion to explain the shape of the value and weighting functions. A review of experimental evidence and a new experiment are reported as supporting a fourfold pattern of risk attitudes: risk aversion for high-probability gains and risk seeking for high-probability losses, with the reverse for low-probability gains and losses.
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Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323. doi:10.1007/BF00122574. Full text read: 25 graduate students from Berkeley and Stanford; 'The median lambda was 2.25, indicating pronounced loss aversion'.