We don’t like to lose things that we own. We tend to become extremely attracted to objects in our possession, and feel anxious to give them up. Ironically, the more we have, the more vulnerable we are ...
Citations: Gal, David. 2006. A Psychological Law of Inertia and the Illusion of Loss Aversion. Judgment and Decision Making. (1)23-32.
Behavioral biases, which are psychological tendencies, can influence an investor's decisions more than they realize. Common biases include herd mentality, overconfidence, confirmation bias, loss ...
One of the foundational ideas in behavioral economics is that psychologically, the “pain of losing something is about twice as powerful as the pleasure of gaining,” according to ...
“Sometimes it’s best to cut your losses and move on.” I remember reading this in management textbooks in college, and it seems like a cliché that is echoed in all the current management literature.
We're all hardwired to value something we own twice what it's worth. But 'selling the position' is an extraordinary way of combating it. This little behavior is paralyzing your startup ...