Loss aversion is a:
A) phenomenon whereby simply possessing an item increases its value.
B) situation in which a consumer prefers avoiding economic losses to acquiring economic gains.
C) bias whereby a person places too much emphasis on the immediate future, ignoring the recent past.
D) bias whereby a person places too much emphasis on the immediate future, ignoring the distant future.

Question

Quizplus · Accepted Answer

Loss aversion refers to the tendency of individuals to prefer avoiding losses to acquiring equivalent gains. It is a concept in behavioral economics indicating that the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

Loss Aversion Is A