Decision Science News

Daily Archive May 4th, 2005

Loss Aversion

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WHAT IS LOSS AVERSION?: Loss aversion, or the tendency for people to prefer avoiding losses over acquiring equivalent gains, is a much-cited psychological concept receiving more and more attention in economic analysis. A recent article presents a behavioral definition of loss aversion and dicusses implications for original and cumulative prospect theory. ABSTRACT: “A behavioral definition […]

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