Loss Aversion | Frankly #25
The Great Simplification with Nate Hagens
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Introduction
Loss aversion is the cognitive bias where our human brains care more intensely about losses than we do about equivalent gains. I was exposed to this at a young age in my mid-20s when I was managing money and doing trades for billionaires on Wall Street. Many years later, I discovered this is an example of the psychological cognitive bias called loss aversion. If we start with, say, $10,000 and we get an immediate windfall gain of 1,000 or 10%. We measure the psychic utility of that.
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