Loss aversion is the tendency to feel the pain of losses more intensely than the pleasure of gains, which can lead to suboptimal decisions such as holding onto losing investments for too long in hopes of a recovery, according to Reed et al. (2021) as cited by Robinson Arran (2023).

Authors

• Person: Robinson Arran Organization: Business Studies Journal
  Behavioral Finance: The Psychology behind Financial Decision ...

Sources

• Behavioral Finance: The Psychology behind Financial Decision ... www.abacademies.org Robinson Arran · Business Studies Journal via serper

Referenced by nodes (1)

• Loss aversion concept