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 ...

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 ...

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 ...

“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.

What takes place in investors' minds when they buy assets, hold on to stocks, trim their positions and make other decisions with their capital? Knowing how investors think can lead to a better ...

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 ...

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 ...

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 ...