Loss aversion is a big bias. It can impact us in so many ways – causing us to make strange decisions about money. This bias can actually cause you to become risk seeking when you’re faced with a possible loss and then risk averse when you have a gain on your hands. Yes, that’s quite complex behaviour… so we break it down for you carefully.
Our guest for episode 2 is Dr Greg Davies. He heads up the behavioural finance division of Oxford Risk in the UK and knows a lot about loss aversion. We also chat to him about risk tolerance (our topic from episode 1) because it would be wrong not to!
Useful links:
More about Greg Davies:
- LinkedIn - https://www.linkedin.com/in/gregbdavies/
- New vistas in risk profiling - https://rpc.cfainstitute.org/en/research/foundation/2017/new-vistas-in-risk-profiling
American Economic Association study on the PGA Tour - https://www.aeaweb.org/articles?id=10.1257/aer.101.1.129
Journal of Personality and Social Psychology medical information study - https://psycnet.apa.org/record/1987-22913-001
You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/loss-aversion/
Or watch the video version of this podcast episode: https://youtu.be/9GR4OMTbzIo
Special thanks to everyone who has helped put this series together:
- Our sponsors: IG Markets South Africa
- Producer: Faeron Wheeler of F Creations
- Original music and sound mix: Neil Leachman
- Video and editing: Deetlefs Smith and Matthew Carew
- Hair and makeup: Ida Webster
- Set styling: Michelle Murray of Interiors Etc.
- Voice over: Sizo Mphti
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.