The Examination of the Validity and Reliability of the Japanese Version of the Loss Aversion Scale

Abstract

Loss aversion, defined as the psychological tendency to experience stronger impacts from losses compared to gains, is widely regarded as a fundamental cause of various decision-making biases. For instance, loss aversion is believed to contribute to phenomena such as the endowment effect and the sunk cost effect. Conventionally, individual’s loss aversion has been assessed as maximal performance using decision-making scenarios, but a method to measure typical tendencies has been sought. This study developed a Japanese version of the Loss Aversion Scale (J-LAS) and examined its validity and reliability. A web-based survey of 780 participants confirmed that the J-LAS assumes the same one-dimensionality as the original version. The J-LAS predicted endowment susceptibility, sunk cost susceptibility, and decision-making under risk, supporting its construct validity. However, test-retest reliability (r = .53) was lower than levels reported for psychological scales in previous studies, suggesting that loss aversion may not be as temporally stable as personality traits. Given these limitations, we discuss the contexts in which the J-LAS can be used appropriately.