The concept of loss aversion is:
A) preferring certain outcomes over uncertain ones.
B) a general tendency for people to put more effort into achieving gains than avoiding losses.
C) a general tendency for people to put more effort into avoiding losses than achieving gains.
D) a spectrum of tolerance for risky situations.

Question

Quizplus · Accepted Answer

Loss aversion is the tendency for people to put more effort into avoiding losses than achieving gains. It is an important concept in decision-making and is often used to explain why people are more motivated by the fear of losing something than the possibility of gaining something.

The Concept of Loss Aversion Is