Loss aversion implies that losses have a bigger impact on people, relative to equivalent gains.

Name: Loss aversion implies that losses have a bigger impact on people, relative to equivalent gains.
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Loss aversion is a well-documented psychological phenomenon where people tend to feel the pain of losses more acutely than the pleasure of gains. Studies have shown that on average, losses are felt about twice as strongly as gains of equivalent magnitude.

Loss Aversion Implies That Losses Have a Bigger Impact on People