Loss aversion means the unhappiness a person feels when he or she suffers a monetary loss exceeds the happiness the same person experiences from receiving a monetary gain of the same amount.

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Loss aversion is a well-known phenomenon in behavioral economics, where people tend to place more weight on losses than gains of equal value. It means that the pain of losing money is stronger than the pleasure of gaining the same amount. Studies have shown that, on average, people feel about twice as much pain from losing $100 as they feel pleasure from gaining $100.

Loss Aversion Means the Unhappiness a Person Feels When He