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 ...

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 ...

What takes place in investors' minds when they buy assets, hold on to stocks, trim their positions and make other decisions with their capital? Knowing how investors think can lead to a better ...

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 ...

Loss aversion is the concept that losses are more psychologically impactful than gains. This is the most important idea in behavioral decision-making (1,2,3) and plays a huge role in healthcare. Loss ...

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 ...