Sentences with phrase «because loss aversion»

Not exact matches

Companies seem to be increasingly offering insurance on all manner of things in part because of something known as loss aversion, which is when people feel a more psychological impact from a loss than from a similar - sized dollar gain.

Companies seem to be increasingly offering insurance on all manner of things in part because of something known as loss aversion, which is when people feel more psychological impact from a loss than from a similar - sized dollar gain.

This plays a big role in investor behavior: Investors have a (bad) habit of selling winners and not letting losers go because of loss aversion rather than for logical financial reasons.

We don't even need to know what will produce that risk - aversion, because the extent of the market losses over the completion of a market cycle are generally more closely related to the preceding level of overvaluation than they are to the particular event that prompts the risk - aversion.

Our subconscious understanding of the laws of physics and the natural laws He has set forth to allow our existence to come about can not be observed, and to say that He is flawed because we see disease is viewing things from a very limited point of view, that being a living human being with an aversion to disease and loss of health.

«It's probably a loss - aversion thing, where the fear of getting a worse contract because of a slump in form outweighs the hope of an improved contract either at their current club or a new team after good performance.»

List said he believed that the loss aversion incentive was so successful because it made teachers focus on the kids who were not mastering the material and stick with them until they got it.

And then the loss aversion kicks in because you know it takes a coefficient of loss or most people lose two to one and so they have to have twice as many gains to offset you know a certain level of loss.

Checking your portfolio too frequently can make you more susceptible to loss aversion because the probability of seeing a loss in a short time period is much greater than over longer time periods.

Investors have a tendency to be too nearsighted and make poor long term investment decisions because of short term loss aversion.

Selling a stock at a loss is difficult for most of us because we have a loss aversion bias.

Part of the problem is inadequate thinking and risk aversion about new asset classes, because they don't have loss data for assets that have been bought to securitize.

For example, in a stock investing context, loss aversion can lead investors to hold a losing stock until it gets back to even — but to quickly sell a stock in positive territory because they're «in the money.»