Loss Aversion

We feel more negative when losing something than positive when we gain it. From selling bad investments to letting go of what we own, our avoidance of loss impacts our decisions and attitude to risk. "Losses are weighted about twice as much as gains in several contexts" (TFAS)

#emotion

Related studies:

Fryer et al. (2012). Enhancing the efficacy of teacher incentives through loss aversion: a field experiment. NBER Working Paper No. 18237.

Examples:

• Sunk Cost Bias
• Time Scarcity
• Cashless Effect
• Disposition Effect