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Kahneman and Tversky (1979) find that losses loom larger than gains. In other words, the pain of losing is psychologically more powerful as the pleasure

Kahneman and Tversky (1979) find that "losses loom larger than gains". In other words, the pain of losing is psychologically more powerful as the pleasure of gaining. This is called

loss aversion

overconfidence

herd-effect

limits of arbitrage

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