This paper has deeply defined loss aversion by exploring three application areas of it. Normally it is thought that people tend to consider what they can gain more than what they will lose in their life. This phenomenon is flying in the face of actual behaviors of them. Losses are much more important and unwarrantable. Through analyzing research results from three areashousing market, energy use, and employee discrimination, this paper can see the obvious existence of loss aversion. Our results suggest that loss aversion can deeply influence peoples decisions by making them feel more anxious about losing anything rather than gaining. Owing to the nature of loss aversion regarding people's unconscious intentions, more information needs to be acquired and put to use. Loss aversion is a notion from behavioural economics that has a significant impact on our lives and that this paper should never deny.
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Ruitian Tian (2024) studied this question.
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