Risk And Loss Aversion Effects

A decision bias centered on how people evaluate risk, probability, gains and losses, most often documenting that a loss looms psychologically larger than an equivalent gain and that people's tolerance for risk shifts depending on how a choice involving uncertainty is structured. This group gathers the risk and loss aversion phenomena recorded for this atlas, drawn from the standard behavioral economics literature on prospect theory and risk perception under uncertainty, including decisions involving insurance, gambling and other explicitly risky choices.