Psychology of a loss

Humans are loss averse. And the individual, corporate and society, which understand it thrive despite odds.

“How did this stuff ever get published?" was what traditional economists asked when behavioural economists observed that human beings were loss averse. This aversion is at the heart of human psychology and asset pricing. And if professors are fighting over academic leadership over the subject you can understand why the only “loss” Google search can handle today is that of “weight”.

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