Behavioral finance specialists might describe this woman’s anxiety over the mortgage decision as being driven by feelings stemming from loss aversion.Psychologically, we humans are wired to ...

Loss aversion in psychology refers to the emotional side of investing, namely the negative sentiment associated with recognizing a loss and its psychological effects.

Loss aversion forms the basis of a lot of behavioural economics, including analysis on The Conversation.It's used to inform very important decisions made in the halls of power.

University of Arkansas research reveals stress significantly reduces loss aversion, causing people to make riskier financial ...

This tendency reflects loss aversion, or the idea that losses generally have a much larger psychological impact than gains of the same size. So what causes us to be more sensitive to losses?

The researchers also discovered that the effects of stress are different for men and women. In general, stress has a greater impact on men’s decision making. Under stress women are also better at ...

Loss aversion can cause investors to miss out on great opportunities, especially if they are still thinking about previous losses. The stock market can continue to soar as investors experiencing ...

It’s worth pointing out that even though a portfolio of projects has lower risk, the use of portfolios does not lower a company’s cost of capital. That’s because the portfolio, by definition, cannot ...

Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains. Cold-blooded logic would dictate that the rational ...

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.

By introducing the concept of utility loss aversion, the study sheds light on the cognitive underpinnings that drive decision ...