Loss aversion
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Revision as of 19:29, 30 August 2009 by Steven0461 (talk | contribs) (Created page with '{{wikilink}} Loss aversion is risk aversion's evil twin. A loss-averse agent tends to avoids uncertain gambles, not because every unit of money brings him a bit less utility...')
Loss aversion is risk aversion's evil twin. A loss-averse agent tends to avoids 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.
