Loss Aversion (Behavioural Economics)
- Levels: A Level, IB
- Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC
The basic idea behind loss aversion is that people feel losses much more than gains.
Loss aversion is often seen in financial markets: Some evidence that stock market investors hold their investment positions with paper losses too long and sell their investment holding paper gains too early.
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Temporary Teacher of Mathematics
Frensham Heights School, Nr Farnham, Surrey
- Economics
- Student videos
- Loss Aversion
- Risk averse
- Behavioural Economics
- Richard Thaler
- Daniel Kahneman
Geoff Riley
Geoff Riley FRSA has been teaching Economics for thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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