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.
loss aversion applies in macro terms - countries that undergo recessions see big wellbeing loss, even when growth brings limited benefits. Ppl value stability pic.twitter.com/6eGDNLCLLt
— Rob Macquarie (@RJMacquarie) January 26, 2019
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