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.

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 ...

Life is a series of choices. Every time you make a decision, there is a possibility that things won’t go as expected (risk) or that something bad will happen (loss). Aversion to risk and loss have ...

Women are less willing to take risks than men because they are more sensitive to the pain of any losses they might incur than any gains they might make, new research from the University of Bath School ...

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 ...

Investors can have emotional – and sometimes irrational – reactions to market activity, often due to behavioral biases. As an advisor, it's important to identify these so that you can provide the ...

A new global study offers a powerful confirmation of one of the most influential frameworks in all of behavioral sciences and behavioral economics: prospect theory, which when introduced in 1979 led ...

The US economy has been throwing off good economic signals for months now, including a steady decline in inflation. Yet Americans' dour mood hasn't budged, and President Biden's economic ratings are ...

Extreme Loss Aversion is Not a Retirement Strategy If you quake at the thought of losing money in the stock market, you might not be thinking about investing in the right way, and left unchecked, the ...

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 ...