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 ...

Loss aversion, one of the major behavioral finance biases, is often defined as the pain of losing an amount of money exceeding the pleasure of gaining that same amount of money. It also refers to the ...

“Sometimes it’s best to cut your losses and move on.” I remember reading this in management textbooks in college, and it seems like a cliché that is echoed in all the current management literature.

Behavioral biases, which are psychological tendencies, can influence an investor's decisions more than they realize. Common biases include herd mentality, overconfidence, confirmation bias, loss ...

We are excited to announce the publication of the first article on the KeAi journal, Risk Sciences, by renowned experts on cyber risk management, Martin Eling from University of St. Gallen and ...

Citations: Gal, David. 2006. A Psychological Law of Inertia and the Illusion of Loss Aversion. Judgment and Decision Making. (1)23-32.

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 ...

We're all hardwired to value something we own twice what it's worth. But 'selling the position' is an extraordinary way of combating it. This little behavior is paralyzing your startup ...