Difference between revisions of "Loss aversion"
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| + | '''Loss aversion''' is [[risk aversion]]'s evil twin. A loss-averse agent tends to avoid uncertain gambles, not because every unit of money brings him a bit less utility, but because he weighs losses more heavily than gains, always treating his current level of money as somehow special. | ||
| − | + | ==Blog posts== | |
| + | |||
| + | *[http://lesswrong.com/lw/13i/shut_up_and_guess/ Shut Up And Guess] by [[Yvain]] | ||
==See also== | ==See also== | ||
| − | * [[ | + | |
| − | * [[ | + | *[[Prospect theory]] |
| + | *[[Risk aversion]] | ||
| + | *[[Sunk cost fallacy]] | ||
{{stub}} | {{stub}} | ||
| + | [[Category:Prospect theory]] | ||
Latest revision as of 05:56, 5 February 2010
Loss aversion is risk aversion's evil twin. A loss-averse agent tends to avoid uncertain gambles, not because every unit of money brings him a bit less utility, but because he weighs losses more heavily than gains, always treating his current level of money as somehow special.
