The tendency to give more weight to possible losses than to possible gains when making decisions that require tradeoffs is known as ____.
A)the certainty effect
B)temporal discounting
C)risk aversion
D)the status quo bias

Question

Quizplus · Accepted Answer

Risk aversion describes the phenomenon where individuals prioritize avoiding losses over acquiring equivalent gains. This is because the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

The Tendency to Give More Weight to Possible Losses Than