• Thumbnail for Loss aversion
    behavioral economics, loss aversion refers to a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain...
    57 KB (6,957 words) - 16:33, 25 May 2025
  • Thumbnail for Ostrich effect
    gains. Panidi (2015) looked at the link between loss aversion and the ostrich effect - loss aversion was measured through lottery choices, and the ostrich...
    17 KB (1,910 words) - 19:49, 22 May 2025
  • Thumbnail for Prospect theory
    describes how individuals assess their loss and gain perspectives in an asymmetric manner (see loss aversion). For example, for some individuals, the...
    46 KB (6,531 words) - 16:35, 25 May 2025
  • can be defined as "an application of prospect theory positing that loss aversion associated with ownership explains observed exchange asymmetries." This...
    40 KB (4,978 words) - 20:59, 22 May 2025
  • they complement each other, starting with Kahneman's own research on loss aversion. From framing choices to people's tendency to replace a difficult question...
    36 KB (3,980 words) - 10:14, 21 May 2025
  • of human decision-making is a strong aversion to potential loss. Under loss aversion, the perceived cost of loss is experienced more intensely than an...
    74 KB (8,878 words) - 13:48, 22 May 2025
  • support theory; loss aversion and mental accounting. Loss aversion refers to the assumption that investors are more sensitive to losses than gains, and...
    41 KB (5,712 words) - 00:44, 1 March 2025
  • aversion Inequity aversion Loss aversion Risk aversion Taste aversion Work aversion Aversion may also refer to: Aversion therapy Aversion (film) Dvesha,...
    700 bytes (106 words) - 14:14, 17 May 2025
  • phenomena such as the status-quo bias and the endowment effect than loss aversion. The psychological inertia account asserts that the reason individuals...
    11 KB (1,457 words) - 15:10, 25 January 2024
  • Thumbnail for Risk aversion
    In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even...
    39 KB (5,253 words) - 16:36, 25 May 2025
  • consumption dimension. According to the theory of loss aversion, that dimension which is considered a loss influences the decision stronger than that which...
    16 KB (1,998 words) - 00:11, 24 May 2025
  • and in particular his critique of the behavioral economics concept of loss aversion. Gal received his Ph.D. from Stanford University in 2007. He joined...
    7 KB (690 words) - 04:35, 17 November 2024
  • intersects with other non-rational cognitive processes such as loss aversion, in which losses comparative to gains are weighed to a greater extent. Further...
    43 KB (5,548 words) - 19:03, 2 June 2025
  • DSM-III-R. Other terms used to describe the phenomenon include sexual aversion and sexual apathy. More informal or colloquial terms are frigidity and...
    39 KB (4,745 words) - 19:50, 25 May 2025
  • than being given a reward of equivalent value. This is known as loss aversion. A weight loss programme asked some participants to deposit money that would...
    23 KB (2,842 words) - 19:30, 22 May 2025
  • concepts later popularized by modern Behavioral Economic theory, such as loss aversion. Jeremy Bentham, a Utilitarian philosopher in the 1700s conceptualized...
    116 KB (12,825 words) - 10:55, 13 May 2025
  • to find loss aversion in decision making. They wrote, "in particular, strict gain and loss of money does not reliably demonstrate loss aversion". This...
    42 KB (4,879 words) - 00:47, 25 May 2025
  • Thumbnail for Regret
    researched loss aversion and how it might affect making decisions. The study suggests that depending on the circumstances and experiences loss aversion could...
    24 KB (3,015 words) - 23:12, 21 May 2025
  • that similar to decisions under uncertainty, loss aversion applies to goals. With goals, loss aversion implies that the negative affect evoked from performing...
    21 KB (2,985 words) - 10:07, 10 July 2024
  • studies have found bias in non-human animals as well. For example, loss aversion has been shown in monkeys and hyperbolic discounting has been observed...
    109 KB (10,092 words) - 11:03, 27 May 2025
  • Thumbnail for Mental accounting
    tuition). Mental accounting can result in people demonstrating greater loss aversion for certain mental accounts, resulting in cognitive bias that incentivizes...
    28 KB (3,722 words) - 01:58, 3 February 2025
  • (around $3). Kahneman attributed this result to loss aversion: owners were affected more by the loss of the mug compared to the effect of a buyer purchasing...
    38 KB (4,977 words) - 02:54, 10 November 2024
  • Thumbnail for Daniel Kahneman
    Cognitive bias Conjunction fallacy Dictator game Framing (social sciences) Loss aversion Optimism bias Peak–end rule Planning fallacy Prospect theory Cumulative...
    92 KB (7,704 words) - 13:22, 29 May 2025
  • Thumbnail for Richard Thaler
    Loss Aversion, and Status Quo Bias. Journal of Economic Perspectives, 5(1), pp. 193–206. Benartzi, S. and Thaler, R.H., 1995. Myopic Loss Aversion and...
    35 KB (3,478 words) - 04:46, 11 May 2025
  • the utility function. Economic biases such as reference points and loss aversion also violate the assumption of rational preferences by causing individuals...
    23 KB (2,693 words) - 21:44, 22 May 2025
  • probabilities enhance the value of long-shots and amplify aversion to a small chance of a severe loss. Consequently, people are often risk seeking in dealing...
    45 KB (6,628 words) - 07:52, 8 April 2025
  • relative to an existing reference point, or status quo. It is related to loss aversion and the endowment effect. In prospect theory it is appropriate to use...
    6 KB (839 words) - 00:41, 27 May 2025
  • almost rational equivalents. This result is consistent with the 'Myopic Loss Aversion theory'. Furthermore, the money illusion means nominal changes in price...
    8 KB (983 words) - 11:47, 21 December 2023
  • show the endowment effect that cannot be parsimoniously explained by loss aversion. Two routes have been proposed to explain the mere ownership effect...
    4 KB (535 words) - 11:36, 27 May 2025
  • conjunction fallacy framing behavioral finance clustering illusion loss aversion prospect theory cumulative prospect theory representativeness heuristic...
    20 KB (1,969 words) - 10:26, 6 April 2025