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Loss aversion

1,021 bytes added, 07:13, 9 February 2016
Created page with "In economics and decision theory, [https://en.wikipedia.org/wiki/Loss_aversion loss aversion] refers to people's tendency to strongly prefer avoiding losses to acquiring gains..."
In economics and decision theory, [https://en.wikipedia.org/wiki/Loss_aversion loss aversion] refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Most studies suggest that losses are twice as powerful, psychologically, as gains.[1] Loss aversion was first demonstrated by Amos Tversky and Daniel Kahneman.

For most of the people, pain will cause more repalsion then plesure will cause attraction. This is due to the hazardous nature of pain. This may be the neuronal mechanism behind [[loss aversion]].

It is positive corrolated to culture, where there are heigher individualism, power distance, and masculinity (mostly [[conservatism]]). Some Relagions seems to be also positive corolated to loss aversion, while macroeconomic is less corrolated<ref>[http://onlinelibrary.wiley.com/doi/10.1002/bdm.1941/abstract Wang, Mei, Marc Oliver Rieger, and Thorsten Hens. "The Impact of Culture on Loss Aversion." Journal of Behavioral Decision Making (2016).]</ref>.

==References==
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