Rank #48

Loss Aversion

Loss aversion is a psychological phenomenon that has been studied extensively in the field of behavioral economics. It refers to the tendency of people to prefer avoiding losses to acquiring gains. This phenomenon has been found to have a significant impact on decision-making and

From Wikipedia

In cognitive science and behavioral economics, loss aversion is a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain. It should not be confused with risk aversion, which describes the rational behavior of valuing an uncertain outcome at less than its expected value.

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