When losses loom larger than gains, people have loss aversion.

Question

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Loss aversion is a well-documented behavioral bias where people tend to prefer avoiding losses over acquiring gains. Studies have shown that losses are generally felt more acutely than gains, with the pain of losing being about twice as intense as the pleasure of winning. This tendency can impact decision-making in a variety of contexts, from investing to gambling to personal relationships.

When Losses Loom Larger Than Gains, People Have Loss Aversion