Regret Aversion

This is the tendency to avoid taking an action due to the fear that—in hindsight—it will turn out to have been less than optimal.  Like leaving money in a bank account, rather than putting the cash in an investment with…

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Bigness Bias

Have you also observed that many people behave as if not all dollars are created equal?  By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…

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Loss Aversion

Social scientists have proven that—emotionally—a loss “weighs” at least twice that of a similar gain.  That might be great for aspiring body-builders, but not so great for us regular Joes. It’s the actual gaining or losing and your feelings about it that…

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