Tag: risk aversion

Behavioral Econs 101: The endowment effect and loss aversion Part 1 – Prospect Theory

Behavioral Econs 101: The endowment effect and loss aversion Part 1 – Prospect Theory

In this third installment of our Behavioral Econs 101 series(for parts 1 and 2, see here, and here) we finally turn to a discussion of the endowment effect. Why do losses feel so much more painful than an equivalent gain feels good? Why are we 

Heuristics and Biases Part II: Brexit from a Behavioural Economics Perspective – Risk Aversion, Overconfidence Bias, Present-Bias and David Cameron

Heuristics and Biases Part II: Brexit from a Behavioural Economics Perspective – Risk Aversion, Overconfidence Bias, Present-Bias and David Cameron

Following on from Part I of this series on Brexit from a behavioural economics perspective(where we discussed the role of attribute substitution in framing the Brexit question), we now shift our focus to the most important person in this entire episode, David Cameron, the former