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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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