Sunday, January 06, 2013

Loss aversion

Loss aversion I suffer from loss aversion - technically defined as disproportionate anxiety about losses. I've always felt that playing "safe" is a better option than being reckless. But loss aversion distorts your world view and makes you draw the line in the wrong place. This is a bad thing, as Tim Hartford points out.

This year, I'm planning on being slightly reckless.

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