Loss Aversion
“In trying to make sense of this pessimism, Ridley, like Kahneman, sees a combination of cognitive biases and evolutionary psychology as the core of the problem. He fingers loss aversion—a tendency for people to...
Tagged: The Sunk Cost Fallacy
The Sunk Cost Fallacy: Persisting on the past
You have a diverse portfolio. You have sold a great share of your portfolio with a considerable profit in the past financial year. Everything is as you like it to be and the stock...
