Loss Aversion Effect: Why Hating Losses Makes You Lose Even More

Loss aversion is a central point of discussion in behavioural economics; we hate losing more than we enjoy winning.
This is in place to protect us; but this aversion can end up driving us into bigger losses, as opposed to helping us minimise our losses.

[@jaredmay956]

Can't believe you have so few subscribers. These are just great. Thanks!

[@quikeconomics6275]

Thanks Jared, really appreciate your nice comment, glad you’re enjoying these :) Hopefully I’ll have more subscribers coming in as the uploads ramp up.

[@hidemaxwell]

This is the best video I’ve seen on the subject

[@mohamedmuhidiin9694]

Very nice

[@practitioner9349]

Its very impressive u explained lot of things so easily, in few minutes. Studying same understanding could take hours

[@zoro8957]

I’m a bit confused because if there’s an 80% chance of me winning or losing something why are you comparing it to the percentage of the amount? If there’s an 80% chance of me losing £4000, there’s that 20% chance that I may not lose. It has nothing to do with 20% of £4000? I’m confused as to where you’re picking up £3,200 from because isn’t this probabilities? Unless you mean to word it as , if you were to lose 80% of £4000 = £3,200 and not the 80% chance but more so fraction of that amount then it would make sense.

[@kiyokiyoko]

3200 is the expected value of the choice (4000*0.8). It's tied to game theory but what he says is ultimately correct, it's better to do the choice with a higher EV

[@samuelbekoe8864]

❤❤

[@GodisGreatst]

Well presented. Thanks

[@elijahj-l825]

Great Video

[@ExcelTutorials1]

I love this video, thank you!

[@takiyaazrin7562]

Best video!

[@Nanami_X_Higurama]

I love this channel , Great videos 😁😁, you've gained a new subscriber

[@quikeconomics6275]

Thanks for subbing, glad you’re enjoying the videos 😁

[@youhavetogotheretocomeback]

Cool vid. Wonder how long we'll have to wait for a strategy to outwit loss aversion :)

[@quikeconomics6275]

Thanks CS, appreciate your kind comment. Haha, I reckon we’ll have to wait for a while yet...we can, but hope :)

[@bailujen8052]

No nerfs in fighting games and only buff the low tiers