One of the foundational ideas in behavioral economics is that psychologically, the “pain of losing something is about twice as powerful as the pleasure of gaining,” according to ...

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 ...

Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...

One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.