LOSS AVERSION: THE UNSEEN FORCE SHAPING INVESTMENT DECISIONS

Kamberi, Artina and Haxhimustafa, Shenaj (2024) LOSS AVERSION: THE UNSEEN FORCE SHAPING INVESTMENT DECISIONS. ECONOMIC VISION International Scientific Journal in Economics, Finance, Business, Marketing, Management and Tourism, 11 (21-22). pp. 33-41. ISSN 2545-4544

Text Economic Vision, Vol.10, No.19-20-33-41.pdf Download (741kB)

Abstract

This paper aims to explore the profound impact of loss avoidance on individual investment decisions, specifically focusing on its influence on risk loss aversion—a core concept in behavioral economics. This concept posits that individuals experience greater psychological consequences from losses than from the avoidance of equivalent gains. The study investigates how loss avoidance and risk aversion interact and influence investment choices. The research methods combine surveys and data analysis to examine the complex relationship between loss avoidance and risk. By analyzing real-world investment decisions across various market conditions, the study seeks to identify behavioral patterns and trends that emerge when individuals face potential losses in their investment portfolios. The research design also considers demographic factors, financial knowledge, and other relevant variables to provide a broader understanding of the elements influencing investment decisions. Ultimately, this study aims to enhance our understanding of the psychological factors that drive individual investment behavior.

Item Type:	Article
Uncontrolled Keywords:	loss aversion, cognitive biases, investment, risk.
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Unnamed user with email zshi@unite.edu.mk
Date Deposited:	26 Sep 2024 08:32
Last Modified:	26 Sep 2024 08:32
URI:	http://eprints.unite.edu.mk/id/eprint/1688

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