Is it Better to Not Lose $900 Than to Find $900?: Loss Aversion Bias - Financial Bias Part 2

In today's episode, we talked about loss aversion. In cognitive psychology and behavioral economics, loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains. Tim asked Nathaniel two questions: 1. what would you choose: guarantee to get $900, or a 90% chance of getting $1000, but a 10% chance of getting nothing? 2. what would you choose: guarantee to lose $900, or a 90% chance of losing $1000, but a 10% chance of losing nothing? Nathaniel g...