Parker's shares of stock in ACME Corporation lost $10 in value, but his shares in XYZ, Inc. gained $18. According to behavioral economics research, how would Parker feel as a result of these changes?

Question

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Behavioral economics research, particularly the concept of loss aversion, suggests that people tend to feel the pain of losses more intensely than the pleasure of equivalent gains. Therefore, Parker would likely feel worse off despite the net gain.

Parker's Shares of Stock in ACME Corporation Lost $10 in Value