“Sometimes it’s best to cut your losses and move on.” I remember reading this in management textbooks in college, and it seems like a cliché that is echoed in all the current management literature.

Loss aversion is the concept that losses are more psychologically impactful than gains. This is the most important idea in behavioral decision-making (1,2,3) and plays a huge role in healthcare. Loss ...

Many high earners delay retirement despite having sufficient wealth due to identity attachment and loss aversion. The poster saved twice his retirement target by 55 but delayed to 57 chasing $6M more.

Citations: Gal, David. 2006. A Psychological Law of Inertia and the Illusion of Loss Aversion. Judgment and Decision Making. (1)23-32.

We are excited to announce the publication of the first article on the KeAi journal, Risk Sciences, by renowned experts on cyber risk management, Martin Eling from University of St. Gallen and ...

One of the foundational ideas in behavioral economics is that psychologically, the “pain of losing something is about twice as powerful as the pleasure of gaining,” according to ...

Behavioral biases, which are psychological tendencies, can influence an investor's decisions more than they realize. Common biases include herd mentality, overconfidence, confirmation bias, loss ...

We don’t like to lose things that we own. We tend to become extremely attracted to objects in our possession, and feel anxious to give them up. Ironically, the more we have, the more vulnerable we are ...

We don’t like to lose things that we own. We tend to become extremely attracted to objects in our possession, and feel anxious to give them up. Ironically, the more we have, the more vulnerable we are ...