tutor2u | Loss Aversion (Behavioural Economics)

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Loss Aversion (Behavioural Economics)

A Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 2 Feb 2019

The basic idea behind loss aversion is that people feel losses much more than gains. People do not treat gains and losses in a linear way!

Let's hear about prospect theory and loss aversion from a Nobel prize winner in economics - Professor Robert Shiller.

Prospect Theory (Yale)

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