Which of the following is an example of the loss aversion bias?
A)a soldier running into gunfire to save a wounded friend
B)a child not wanting to be separated from his parents
C)an employee being much more upset about a $100 per month pay cut,then he would be excited about a $100 per month raise
D)a women becoming upset because she cannot find her keys

Question

Quizplus · Accepted Answer

Loss aversion bias refers to the tendency to feel the pain of loss much more strongly than the pleasure of gain. In this case, the employee is much more upset about the $100 per month pay cut, which is a loss, than he would be excited about a $100 per month raise, which is a gain. This is a classic example of loss aversion bias.

Which of the Following Is an Example of the Loss