Behavioural Economics - Loss Aversion

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The basic idea behind loss aversion is that people feel losses much more than gains. Loss aversion is often seen in financial markets: Some evidence that stock market investors hold their investment positions with paper losses too long and sell their investment holding paper gains too early.
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tutoru-official
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Could you please show the mathematics behind prospect theory?

ArpitThapak-gs
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In the example of 1920 Pounds, its not the expected utility of 1927 Pounds. Its the expected return, as no utility functions are known. Especially for economics students very big difference. But overall great and interesting video :-)

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