A Vigorous Debate Over Loss Aversion

Loss aversion—the concept that “losing something has a bigger impact on us than winning something”—has been around for over 40 years. But researchers are beginning to doubt its strength. In a normal loss aversion study, respondents would pay more to keep a mug than to get a new one. However, recent research suggests that a preference for inaction over action may be the cause. When asked how much they would pay to reclaim a mug that had already been taken from them, the subject’s loss aversion indicators vanished. Read full article here


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