Explainer: what is loss aversion and is it real?
- Written by Brendan Markey-Towler, Researcher, The University of Queensland
You may still feel losing a wallet more than finding it.ShutterstockA recent study claims a core idea in behavioural economics – loss aversion – is a fallacy. Loss aversion is the theory that the pain of losing something is greater than the pleasure we feel by gaining something equivalent.
Loss aversion forms the basis of a lot of...