Sentences with phrase «regret aversion»

Rabin and Thaler (2001) and Mitchel and Holzworth (2005) explained how the insurance marketplace can be a laboratory for the exploitation of myopic loss aversion, regret aversion, anchoring, framing, mental accounting and subjective probability.

The psychological culprit here is called regret aversion: people tend to put off making decisions because they fear their choice will lead to a poor outcome.

Closely related to regret aversion is the disposition effect, which refers to the tendency of selling stocks that have appreciated in price since purchase («winners») too early and holding on to losing stocks («losers») too long.

The theory of regret aversion or anticipated regret proposes that when facing a decision, individuals might anticipate regret and thus incorporate in their choice their desire to eliminate or reduce this possibility.

Regret aversion means people avoid or delay making decisions that might lead to them suffering a loss.

Herding, representativeness, and regret aversion (fear of losing out on future profits) can eventually

They see others boasting about big profits and «regret aversion» kicks in.

Not exact matches

I've taken some liberties and defined these three reasons using mindfulness terminology (worries and fears) instead of behavioral economics jargon (loss aversion and regret avoidance) used in the original Shefrin and Statman paper.

But remember, during the period you're easing out of stocks, there's a danger the market will go against you — and your aversion to regret could come back to haunt you.

This is all about aversion to regret: They hate the idea that they'll sell a big chunk of stock — and the market promptly rockets higher.

And finally, on the question of whether David should deploy all his funds at once, there are competing schools of thought regarding how and when to deploy and DeGoey notes how the primary concern is loss aversion and regret.

Rather, they take extraordinary measures to avoid or limit losses, which curtails their chances of achieving gains This tendency is known as loss aversion or regret avoidance.