Loss Aversion

by csladmin

01.13.2022

The pain of losing is psychologically twice as powerful as the pleasure of gaining– “Losses loom larger than gains”. The loss felt from money, or any valuable object, can feel worse than gaining that same thing. Thus, loss aversion refers to an individual’s preference to avoid losses over acquiring equivalent gains. Simply put, it’s worse to lose $20, than to gain $20.

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