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.
You’ve been watching the local housing market take off lately as more and more buyers take advantage of low mortgage rates to finance the purchase of their homes. Meanwhile, you stare bleakly at the ...
Imagine this scenario: a friend offers to flip a coin and give you $20 if it lands on heads. If it lands on tails, you give her $20. Would you take that gamble? For most of us, the amount you could ...
The US economy has been throwing off good economic signals for months now, including a steady decline in inflation. Yet Americans' dour mood hasn't budged, and President Biden's economic ratings are ...
Extreme Loss Aversion is Not a Retirement Strategy If you quake at the thought of losing money in the stock market, you might not be thinking about investing in the right way, and left unchecked, 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 ...
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 ...