Loss aversion occurs when
A)gains loom larger than losses of an equal size.
B)people underestimate how much regret they will experience.
C)losses loom larger than gains of an equal size.
D)people delay decisions involving two alternatives that both involve losses.

Question

Loss aversion occurs when ​
A)gains loom larger than losses of an equal size.
B)people underestimate how much regret they will experience.
C)losses loom larger than gains of an equal size.
D)people delay decisions involving two alternatives that both involve losses.

Quizplus · Accepted Answer

Loss aversion is a concept from behavioral economics which suggests that people tend to prefer avoiding losses rather than acquiring equivalent gains, meaning losses loom larger than gains of an equal size.

Loss Aversion Occurs When ​

Loss Aversion Occurs When