Back to LessWrong

Loss aversion

From Lesswrongwiki

Revision as of 06:56, 5 February 2010 by Vladimir Nesov (Talk | contribs)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search
Smallwikipedialogo.png
Wikipedia has an article about

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

See also