Abstract

The article reveals the concept of loss aversion as an economic entity. In the behavioral economy, the concept of loss aversion can be considered from the point of view of psychological and behavioral aspects affecting decision -making decisions. The behavioral economy is studying how people make decisions in conditions of limited rationality, emotional factors and insufficient information. In the context of the behavioral economy, loss aversion can be explained using concepts such as loss of losses, cognitive distortions, the effect of drowned value, etc. The article contains a description of the influence of the principle of failure to accept losses on the participants in the financial market. The author reveals the signs and behaviors of the participants in the financial market when the phenomenon of failure of loss is influenced by them. In the conclusion, a list of principles that serve to overcome the impact of the effect of failure of losses in situations of decision -making by economic entities is revealed.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.