“Thus, a loss aversion principle is rendered superfluous to an account of the phenomena it was introduced to explain.”

What better day than Christmas, that day of gift-giving, to discuss “loss aversion,” the purported asymmetry in utility, whereby losses are systematically more painful than gains are pleasant? Loss aversion is a core principle of the heuristics and biases paradigm of psychology and behavioral economics. But it’s been controversial for a long time. For example, […]

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