Which of the following describe the concept of "loss aversion"?
A)people will resist taking a loss on an item even though it is not costly to hold on to an asset.
B)people will resist taking a loss on an item even though it is costly to hold on to an asset.
C)people will accept taking a loss on an item when it is costly to hold on to an asset.
D)people will accept taking a loss on an item even though it is not costly to hold on to an asset.
E)none of the above.

Question

Quizplus · Accepted Answer

Loss aversion refers to the tendency of individuals to prefer avoiding losses to acquiring equivalent gains. It means people are more likely to resist taking a loss on an item, even when holding onto it incurs costs, because the pain of losing is psychologically twice as powerful as the pleasure of gaining.

Which of the Following Describe the Concept of "Loss Aversion