Loss aversion is when investors try harder to avoid losses than to make gains, leading to status quo bias and reluctance to take financial risks. It can be avoided by focusing on similar benefits rather than concrete differences, and marketers use it to drive product awareness. Loss aversion is the term applied to the tendency […]

Loss aversion is the tendency for people to try to avoid losses more than they try to make gains. This can affect the economy as people are reluctant to take financial risks, and can lead to distortions in negotiations. However, loss aversion can be avoided if the acquired item has the same benefits as the […]