Tagged: The Sunk Cost Fallacy

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 regret a loss more than a similar gain—as the bias with the most impact on abundance....

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 markets all over the world are acknowledging your heavenly talents. There’s just … just that little...