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 is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...

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 ...

The human mind is prone to a range of cognitive biases that can distort decision-making and lead to investment outcomes that fall short of expectations. When investing, the human mind is both an asset ...

We price equity-linked life insurance with surrender guarantees and account for risk preferences in the form of risk-averse and loss-averse policyholders in continuous time. Risk-averse policyholders ...

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 ...