Huxley lost $100 in the stock market. According to behavioral economics research, how much of a gain would he have to experience to offset the feeling of loss and have no net change in utility?

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According to behavioral economics, particularly the concept of loss aversion, people feel the pain of losing money more acutely than the pleasure of gaining the same amount. Research suggests that the pain of losing is psychologically about twice as powerful as the pleasure of gaining, meaning Huxley would need to gain approximately $250 to offset the feeling of losing $100.

Huxley Lost $100 in the Stock Market