Somethin’s brewin’
There is a very interesting debate going on for some time already about a psychological effect called “loss aversion” [1]. This effect, and many other similar psychological effects describing the peculiarities of human decision making, underpins the field of behavioral economics and behavioral finance. This effect has been called a fallacy. The popular idea that avoiding losses is a bigger motivator than achieving gains is not supported by the evidence. To get up to speed: […]