The idea of loss aversion—that, to an irrational degree, individuals avoid losses more than they pursue gains—has been influential in the field of behavioral finance. It has been imputed to drive ...
Loss aversion is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...
One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.
Given the choice, most of us would rather avoid a loss than reap a reward. This can help us avoid making expensive mistakes, but it can also make us risk averse and prevent us from taking advantage of ...
“Sometimes it’s best to cut your losses and move on.” I remember reading this in management textbooks in college, and it seems like a cliché that is echoed in all the current management literature.
Loss aversion, one of the major behavioral finance biases, is often defined as the pain of losing an amount of money exceeding the pleasure of gaining that same amount of money. It also refers to the ...
A recent study posted to the bioRxiv* preprint server evaluates how people with anxiety respond to a gambling decision-making task. Study: Risk and Loss Aversion and Attitude to COVID and Vaccines in ...