Self‐other decision‐making differences in loss aversion: A regulatory focus perspective

Drawing on a cultural perspective, we examined whether differences in self‐other decision making documented in the West can be replicated in an Eastern context. Study 1 revealed that Chinese participants showed self‐other decision‐making differences in loss aversion similar to those observed in Western participants; loss aversion differed depending on the type of decision recipient, and trait regulatory focus moderated the self‐other decision‐making difference. Study 2 found a mediating effect of situational prevention but not promotion focus on the relationship between decision makers’ roles and loss aversion. Furthermore, both studies revealed that participants did not show a preference for loss aversion, suggesting that the baseline of self‐other decision‐making differences has shifted in China compared to the West.