Loss aversion is:
A)a general tendency to prefer certain outcomes over uncertain ones.
B)a general tendency to put more effort into achieving gains than avoiding losses.
C)a general tendency to put more effort into avoiding losses than achieving gains.
D)a spectrum of tolerance for risky situations.

Question

Quizplus · Accepted Answer

Loss aversion refers to the psychological phenomenon where people tend to prefer avoiding losses to acquiring equivalent gains. It means that the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

Loss Aversion Is