Loss aversion - Wikipedia
In cognitive science and behavioral economics, loss aversion refers to a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain. [1] [2] It should not be confused with risk aversion, which describes the rational behavior of valuing an uncertain outcome at less than its expected value.
What Is Loss Aversion? - Psychology Today
Mar 8, 2018 · The loss aversion is a reflection of a general bias in human psychology (status quo bias) that make people resistant to change. So when we think about change we focus more on what we might lose...
Loss Aversion: Definition, Risks in Trading, and How to Minimize
Apr 26, 2024 · Loss aversion is the observation that human beings experience losses asymmetrically more severely than equivalent gains. This overwhelming fear of loss can cause investors...
Loss aversion - The Decision Lab
Loss aversion is a cognitive bias that suggests that for individuals the pain of losing is psychologically twice as powerful as the pleasure of gaining.
Loss Aversion - SpringerLink
Jan 1, 2020 · According to the loss aversion principle, the subjective value that people assign to losses exceeds the subjective value that they assign to equivalent gains. Loss aversion is regarded as one of the strongest and most robust empirical findings in the behavioral sciences.
What Is Loss Aversion? - Scientific American
In 1979 psychologists Amos Tversky and Daniel Kahneman developed a successful behavioral model, called prospect theory, using the principles of loss aversion, to explain how people assess...
Loss aversion - BehavioralEconomics.com | The BE Hub
Loss aversion is an important concept associated with prospect theory and is encapsulated in the expression “losses loom larger than gains” (Kahneman & Tversky, 1979). It is thought that the …
Explainer: what is loss aversion and is it real?
Aug 21, 2018 · Loss aversion is the theory that the pain of losing something is greater than the pleasure we feel by gaining something equivalent. Loss aversion forms the basis of a lot of behavioural economics, including analysis on The Conversation .
Loss aversion - Economics Help
In behavioural economics, loss aversion refers to people's preferences to avoid losing compared to gaining the equivalent amount. “losses loom larger than gains” (Kahneman & Tversky, 1979) For example, if somebody gave us a £300 bottle of wine, we may gain a small amount of happiness (utility).
Loss aversion - (Cognitive Psychology) - Vocab, Definition
Loss aversion can lead to irrational decision-making, where individuals hold onto losing investments or choices due to fear of realizing a loss. The concept is essential in understanding various cognitive biases that affect consumer behavior, investment strategies, and risk-taking.